Wholesaler is the very important part of the channel of distribution he buys product from the producer and resale it to the retailer he do not contact with ultimate customer.
A wholesaler can be a single person or a firm which plays a vital role in the channel of distribution he purchases large amount of products at a low price and resale it to the retailer with the margin of profit.
He acts as the middleman between the producer and the retailer in order to provide the product to the customer on his door step easily.
Services of wholesaler to the producer
Acts as Intermediary: he acts as the intermediary person between the producer and the retailer. He takes goods from the producer and sale it to the retailer.
Storage and transportation:
he store goods on the behalf of the producer in his warehouse and when time comes to disclose the product he transport it to the retailer
when the demand of the product rises he discloses the stock and makes the price stable to earn more profit to facilitate the producer.
Provides market information:
he provides market information to the producer because he keep in touch with the market and he knows better that what is the demand in the market and what actually customer want.
he gives advises to the producer about the packaging, features and the promotion of the product. In addition he provide financial support to the producer.
Services to the Retailer
Facilitate in small scale purchasing: he facilitate the retailer to purchase goods on his choice in small quantity. Retailer need not to stock the goods because the wholesaler is providing him this facility.
Quick delivery of goods: he quickly deliver the goods to the retailer when the demand of goods rises he take out his stock and deliver it to the retailer and shares the part of advantage with the retailer.
Store and transportation: he facilitates the retailer in the storage of products. He stores the product and transports it to the retailer when demand of the product rises.
Purchases on behalf of retailer: he purchase product from the producer on the behalf of retailer because retailer cannot purchase directly from the producer.
Credit facility: he give credit facility to the retailer because he may have limited resources at that time wholesaler give rescue to the retailer.