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As you know the producers and the manufacturers of any type of product will not have means to reach the end consumer. They have to get the benefit of the wholesale dealer services. The wholesale dealer acts as a bridge between the consumer and the producer.
The all time trading can be classified in many ways. However, the most common three types of wholesale dealers are broker, merchant wholesale dealer and the manufacturer agents.
- Brokers:
The brokers are actually a middle man who acts as a connection between the consumer and the producer. There is a basic difference with the wholesale dealers in the sense that these brokers will not assume the titles of the goods. They act on behalf of their values and get a commission in return. They also know about the selling agents, commission agents, import and the export agents. The commission is the only profit.
- Merchant wholesale dealer:
These persons usually engage in obtaining the various types of products from the manufacturers and from producers in bulk. They will take care of the storage and distribution to the customers and retailers. They are named differently in different industries such as distributor, wholesaler and so on. They obtain items in bulk and pass all that on to a chain of retailers. They are engaged with the direct selling.
- Manufacturer agents:
Certain manufacturers are being tried to maintain in contact with the customers and open a small branches where they sell wholesale products only. They may also have a storehouse of their own. These types of agents do not sell or exhibit any competitor products. However, they directly deal with the customers and sell all their products at wholesale rate.
- The current scenario:
With the arrival of the internet banking, the significance of the wholesale sealers is reduced rapidly. There are many online stores sell goods in reduced price. They are acted as a platform where the customer can directly deal with the seller. Also they do not need to maintain a storehouse facility. On receipt of orders, they directly pass the orders to the manufacturing company and they will arrange for delivery too.
