What are the functions of wholesaler?

The Functions of Wholesaler.

Buying of goods in large quantities from producers and selling the same in small quantities to retailers is termed as wholesale trade and the person who carries on wholesale trade is called the “Wholesaler”.

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The primary functions performed by the wholesalers are as follows:

i. He assembles varieties of goods from different producers. In case of agricultural goods, he collects small quantities of goods from numerous small-scale producers and store in his godown.

ii. He stores the assembled goods in proper warehouse till the goods are sold. Warehousing or storing of goods fills up the time gap between the production and consumption.

iii. He distributes the assembled goods to the retailer or to the consumer directly. He thus helps in the dispersion process of marketing.


iv. He helps in the transportation of goods form the place of production to his godown and to the retailer.

v. He provides financial assistance to the retailers by supplying products on credit.

vi. He helps in proper grading of goods as per quality, size and colour.

vii. He involves all the risks associated with the ownership as he makes bulk purchases and makes arrangement for assembling and warehousing.

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