9.4.2.

1 Definition

 A wholesale trader can be defined as enterprise that buys in bulk and sells to retailers
and/or to industrial, institutional or commercial users, but that does not sell in large
quantities to final consumers
 Wholesalers are thus enterprises that derive more than 50 per cent of their gross income
from sales to other institutions or resellers and less than 50 per cent from final consumers
9.4.2.2 Characteristics of wholesaler

 Buy in large quantities from producers.

 Deal in a few products
 Do not deal directly with the ultimate consumer but act as the link
between the manufacturer and retailer.
 Operate in a central market and perform specific functions.
9.4.2.3 Functions performed by wholesalers

 Wholesalers perform specific functions for both their suppliers and

customers
 These functions are variations of the basic marketing functions:
buying, selling, grading, storing, transporting, financing, risk taking,
and gathering market information. Specific functions include
functions performed on behalf of their customers and suppliers.
9.4.2.5 Types wholesalers

 Full-service wholesalers
 General merchandise wholesalers
 Single/general-line wholesalers
 Speciality wholesalers
9.4.2.5 Types wholesalers

 Limited function wholesalers

 Cash-and-carry wholesalers
 Desk-jobbers
 Truck-jobbers
 Rack-jobbers
 Mail-order wholesalers
 Producer’s cooperatives
9.4.2.5 Types wholesalers

 Agent middlemen
 Manufacturers’ agents (free-wheeling sales representatives)
 Brokers
 Commission merchants
 Selling agents
 Auction companies