Who are Wholesalers?
There are two main types of wholesalers:
- Merchant wholesale
These people are bound to sell goods on their own account; they are the distributors, jobbers, drop shippers, and import/export merchant. From them, sales offices and sales branches (not retail store) do wholesale for the manufacturing, refining, or mining enterprises. Merchant wholesale have their own establishments in order to maintain their warehouse, doing the control process between them and their customers. Usually, goods are sold without transformation but services include sorting, labelling, packaging, and other marketing services.
- Business to business, agents and brokers, commission merchants, import/export agents and brokers, auction companies, and manufacturers’ representatives
These kind of wholesale involves on arranging for the purchase or sale of goods owned by others or purchasing goods in exchange of a commission fee. This is why they do not usually handle the goods they sell.
There are wholesale establishments that maybe connected with a single manufacturer and promote and sell the particular manufacturer’s products to a wide range of other wholesalers or retailers. There a wholesalers who also engage in limited retail products only needed by particular retail operations.
Normally, wholesaling refers to large volumes of merchandise, durable non-consumers goods maybe sold in single units. However, the sales of durable non-consumer goods used in the production of goods and services like heavy duty trucks may still be credited to wholesale merchandise and that production can still be widely spread. Thus, there is always a business relationship between wholesalers and retailers in industry.