Wholesaling Channels of disribution

Wholesaling Channels of disribution
Wholesalers trade in a variety of different markets, handling either raw materials or finished goods. They provide a range of services to both their suppliers and customers with consumer goods, these services are both benefited for the manufacturers and retailers.

The wholesaler´s services for manufacturers

Bulk buying is easier and cheaper for the manufacturer to deal with a few large orders rather than with many small orders, which can equate to higher prices.
Storage. This manufacturer´s own warehousing costs are reduced.
Promotion. The wholesaler promotes the product and advertises for the manufacturer.
Advice. The wholesaler gives feedback on the success of the goods, to the manufacturer.
Risk-bearing. The wholesaler acts as the manufacturer market, therefore taking the risk of not being able to sell the goods.

The wholesaler´s services for retailers

Breaking Bulk. The wholesaler buys in large quantities but sells to the reta...