Modes of transport

1. Provides services to producers/manufacturers.
2. Provides market research on behalf of the manufacturers.
3. Provides goods to retailer from serious manufacturers.
4. Stabilizes prices/they minimize the problem of price fluctuation.

1. Sometimes a wholesaler may refuse to buy goods because of the high price and also, he may refuse to sell goods because of fall in price thus including shortages.
2. Sometimes a wholesaler provides incorrect information to manufacturers regarding market situation.
3. They can create shortages in view of some selfish motives.

The following are problems facing home trade:

1. Small scale operation - This is due to lack of finance capital most traders operate in very small scale they cannot buy goods in large quantities due to lack of capital.
2. Lack of capital - There is a problem in getting capital in both initial investment and business expansion.
3. Poor transport and communication - Traders particularly in rural areas still have to wait for considerable period before receiving their supplies due to poor transport facilities.
4. Lack of training (knowledge) - Many people lack knowledge about stock control, bookkeeping selling techniques, costing etc.
5. Poor warehousing/storage facilities for wholesaler - As we know there are some goods produced seasonally but demand for them is throughout the year so warehousing facilities are highly needed.