The services of wholesalers to retailers are as follows:
- Availability of goods : The wholesaler provides
a variety of same goods to the retailer and hence relieves him from the burden of collecting the goods from several manufacturers.
- Risk sharing : A retailer does not have to bother about risk of storage, reduction in price, fluctuation in demand, etc. All these risks are borne by the wholesaler.
- Grant of credit: The wholesaler grants credit facility to the retailer, thus enabling him to manage his business with a small amount of working capital.
- Marketing support : The wholesalers undertake advertisements and other sales promotional activities in order to induce the consumers to purchase the goods. Thus, they provide marketing support to the retailers.
- Specialized knowledge : The wholesalers provide useful information to the retailers about the new products, their benefits, quality, etc. They also advise the retailers regarding the decoration of their shops, allocation of shelf space and demonstration of certain products.