What are the functions of wholesalers?

Services provided by wholesalers are as follows:

  1. Buying and assembling : The wholesaler buys the product from the manufacturer and collects the same at one place and supplies goods to the retailers according to their requirement.
  2. Storage function : The wholesaler also performs the storage function. The goods are purchased by the wholesalers from the manufacturers and stored at warehouses in order to meet the demand of retailers. The wholesalers act as bridge between the production and consumption of goods.
  3. Breaking the bulk : The wholesaler purchases goods from manufacturers in bulk and avails discounts. He sells goods in small quantities to the retailers which saves the retailers from maintaining large stocks.
  4. Advertisement : A wholesaler undertakes advertising and sales promotion of the product which automatically result in the increase in sales.
  5. Market information : Wholesalers inform the retailers about the introduction of new products in the market. He also gets feedback from the retailers about the needs and preferences of customers. He passes the information to the producer to make necessary changes in the products.
  6. Risk bearing : The wholesalers have to maintain optimum levels of stock in their godowns to meet the demands of the retailer. The retailer’s risk of maintaining godowns, price fluctuations, etc., are
    reduced to a great level.