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Importance of Wholesalers

Wholesalers, Distributors, Agents and Retailers are an important part of any business. Many times they act as a catalyst to manage a sales force, improve promotion, analyse market demand and manage supply according to it. This post covers the need and importance of wholesalers to the manufacturers, retailers, consumers, society and economy.

Below are the key points which describes Importance of Wholesalers.

Break Down Bulk

Wholesalers make distribution easy by dividing bulk things small small parts. This helps marketer or manufacturer to distribute products efficiently and smoothly with value addition at this stage.

Sells in Small Quantity

Wholesalers buys products in in bulk and sells in small quantity.


One more important thing is that wholesalers provide storage facility.

Reduced Contact Cost

Wholesalers helps to reduce contact cost of producer and customer.

Risk Bearing

Wholesaler takes responsibilities like sale force, promotion etc. This helps organisation to boost product sale without spending additional cost.

Demand Supply Stability

Wholesaler is like an effective communication linkage between producer and retailer or customer. Wholesaler is connected to the retailer and market directly. Hence he knows better about product demand in the market. Wholesaler helps manufacturer and economy to maintain Demand Supply Stability.

Better Information

Wholesaler posses detailed and updated Information about Market. This includes Price, Distribution, Demand, etc..

Extended Service(s)

Wholesaler manages all services and counsels to consumers (end users).

Wholesaler also provides services to the Manufacturers, Retailers and to the society.

Acts as an information mediator

Wholesaler provides market information to the manufacturer. This includes but not limited to Market Demand, Supply required, consumer preferences etc.

Bottom line

This is all about the Importance of Wholesalers to the manufacturer, retailer, customer and society. A wholesaler is an important link between manufacturer and retailer. It acts as an important part of the value chain of the distribution channel in Marketing.

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