Wholesaler refer to a firm engaged primarily in wholesaling activity, while wholesaling refers to all the activities involved in selling goods and services to those buying for resale/business use.
Functions of Wholesaling
- Selling and promoting
- Buying and assortment (a group of similar things having different sizes, color and quality) building
- Bulk-breaking
- Warehousing (storage).
- Price stability –This is possible mainly due to storage that happens .During low production seasons, stored goods are released in the market and stabilize supply in the market.
- Transportation
- Financing
- Risk bearing
- Market information (advice) due to contact with manufacturers
- Management services and advice
DIFFERENCES BETWEEN WHOLESALERS AND RETAILERS
| WHOLE SALERS | RETAILERS |
|
Sells goods from his warehouse |
Sells goods from shop |
|
Can be located else where |
Located at complicated centers to offer what is supplied |
|
Need large capital base to start |
Need smaller capital to start |
|
Need large storage space |
Need smaller storage space |
|
Sells on cash basis |
Sells in credit and cash. |
|
Specialise in buying and selling few types of commodities |
Buy and sell different commodities |
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