1. Wholesale Trade
  2. The Channels of Distribution


Wholesale Trade

Meaning of Wholesaler and Wholesale Trade

A wholesaler is a trader who buys goods in bulk or in large quantities from the producer/manufacturer and sells in small quantities to the retailer.

Wholesale trade therefore is a type of trade in which goods are bought in bulk or in large quantities from the producer or manufacturer with the aim of selling them in small quantities to a retailer (one who sells goods in small bits to the consumer).

Features of Wholesale Trade

(i) Bulk breaking

(ii) Buys goods in large quantity and sells in small quantity to retailer.

(iii) They are the middlemen between the producer and retailers.

Functions of Wholesalers to the Manufacturer/Producer

(i) Breaking of bulk: They buy in bulk and sell in small quantities to the retailers.

(ii) Warehousing function: The wholesalers are able to purchase very large quantities from the producers, which they store in the warehouse until they are required by the retailers.

Lesson tags: Commerce Lesson Notes, Commerce Objective Questions, SS1 Commerce, SS1 Commerce Evaluation Questions, SS1 Commerce Evaluation Questions Second Term, SS1 Commerce Objective Questions, SS1 Commerce Objective Questions Second Term, SS1 Commerce Second Term
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