Types / Classification of Wholesalers

 Merchant Wholesalers
They often specialize in a certain type of products in a relatively small geographic area and several wholesalers
compete for the same set of customers.

a. General Merchandise Wholesalers (sell different product types) eg: Food Products, Personal
Care, Cleaning products, etc.
b. General Line Wholesalers (wide variety in one product line) eg: focusing only on a wide range of
personal care products like soaps, shampoos, cosmetics, perfumes, facewash, deos etc.
c. Specialty Wholesalers (selling only specific products) eg: selling only deos or facewash

 Retail Wholesalers
• They sell goods to small retailers as well as end consumers
• Usually located in wholesale trading locations
• They don’t provide any delivery service
• Cash and carry model of business. Usually, no credit is given to the customer
 Agents and Brokers
Serve as a link between the seller and buyer. They receive a commission from the seller for the business
transacted. Eg: Insurance Agents, Tours & Travel Agents, Real Estate Agents, etc.

 Truck Wholesalers
Sell a limited line of perishable products like vegetables, fruits or pulses from their vehicles and sell on a cash
basis to small retailers, hawkers, and consumers.

 Drop Shippers
They operate in products like coal, timber, metals, etc..
They do not carry inventory
When they receive an order, they select a seller who directly ships the goods to the customer.