Transportation documents

Function of a wholesaler

1. Link between retailers and manufacturers — He buys goods from producers or manufacturers and sells them to retailers, creating a bridge between producers and many consumers.

2. Bulk breaking — He buys goods in bulk from producers or manufacturers and divides them into smaller packages that are convenient for retailers.

3. Storage — A wholesaler owns a large warehouse for storing the large quantities of goods that he buys from various suppliers before selling to retailers.

4. Financing (Cash paying) — A wholesaler buying in large quantities and paying in cash finances the manufacturers.

5. Price stabilizer — When he buys in large quantities, he avoids the problem of price fluctuation (rise and fall of prices). He also stabilizes the price by storing goods and releasing only the required quantity into the market.

6. Source of information — He supplies market information to both manufacturers and retailers with regard to product changes.

7. Risk bearing — He accepts full responsibility for loss due to damage, fluctuations in demand, changes in fashion, theft, fire, etc.

8. Preparing goods for sale — Sometimes the wholesaler packs, grades, or hands goods to retailers.