What is meant by wholesaler? Why wholesalers are needed in the channel distribution?

A wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers. In its simplest form, a distributor performs a similar role but often provides more complex services. Distributors and wholesalers often work together as channel partners.  The channel of distribution refers to the overall flow of information and goods from original manufacturer to end consumer. The wholesaler, also known as the distributor, acquires goods from a manufacturer, farmer or miner, holds them in a distribution center and then sells them to retailers. What the wholesale do in the channel of distribution are: Product Acquisition

Wholesalers are experts in the process of taking finished goods and getting them on store shelves. The first key step for a wholesaler is to decide which products to purchase and distribute. Generally, a distributor looks for products that have strong consumer appeal that retailers will want to acquire. In some cases, manufacturers offer trade discounts and promotions to get wholesalers to buy because of a reduced cost.

Storage

While manufacturers and retailers sometimes have warehouses or distribution centers, this type of facility is most often associated with a wholesaler. A warehouse is the physical location where a distributor organizes products and holds them until purchase by a retailer. Typically, wholesalers use inventory software program to keep track of inventory-on-hand and location for pulling products for an order. The more inventory the wholesaler carries, the more space and staff it takes to manage.

Marketing and Sales

Each participant in the distribution channel needs marketing and sales functions to move goods along. Wholesale sales reps meet with new retail prospects and existing accounts to sell goods. With new prospects, sales reps try to persuade retail buyers that certain products are in high demand and offer good revenue opportunities. Often, though, a distributor must offer discounts to get a retailer to clear shelf space for a new, less familiar brand. With existing accounts, inside sales reps spend more time on the phone following up with customers and taking renewal orders.

Transportation and Logistics

A central activity for a wholesaler is the physical distribution of goods and related logistics. Distributors commonly use trucks, planes and boats to transport goods, depending on the retailer's location. Warehouse staff takes inventory orders, pulls product from shelves, packages it and loads it up on trucks or other transport vehicles. Once the shipment is ready to move, notice is sent through an inventory system to let the retailer know items are on the way.

 

 

A wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers. In its simplest form, a distributor performs a similar role but often provides more complex services. Distributors and wholesalers often work together as channel partners.

Agree with Mrs.Ghada Eweda  answer ====================

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Agree with Ahmed Mohamed HR & Admin Director

Thank you for inviting ............ in order to facilitate and to facilitate the transport of goods as well as the knowledge of market needs

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Fully agree with answers given by Mrs. Ghada and colleague Ahmed Mohammad

Wholesalers perform a number of functions in the marketing of goods. More important of the marketing functions performed by them are:

1) Assembling and buying

2) Storing or warehousing, i.e., holding stock of goods

3) Transporting

4) Financing

5) Risk - bearing

 

...and more

 

Thank You

Product Acquisition Storage Marketing and Sales Transportation and Logistics