Wholesalers play a crucial role in the marketing supply chain which adds value to the product. Wholesalers can be divided into different types or categories based on their roles. Below said are the Types of Wholesalers.
The basis for the classification: Wholesalers play a very important role in the supply chain and logistics management. Wholesales can be classified on the basis of their role and responsibilities in the business.
This type of wholesaler buys goods from company or manufacturer directly.
Major roles and responsibilities
- Most common type
- Direct buying from the manufacturer
- Storage of the goods
- Sell to the retailers or customers
Also Known As:
- Jobber (Buys from various sources for resale to retail stores)
Who’s responsible for the loss, if any? Merchant Wholesaler
Example: Parle, Other FMCG companies and products
Broker and Commission Agent
- Independent Middleman
- No Risks
- Do not take the title of the goods
- Commission on the basis of sales
Real Estate, Insurance,
Intermediaries between Manufacturer and Wholesaler
Individual or Firm that operates on a contractual basis to sale entire range.
Cash and Carry wholesaler
- Handling limited lines of product
- Immediate payment demanded
- Focus on small retailers
- Delivery retailer side
Drop Shipper or Direct Mill Shipper
A wholesaler who accumulates orders from retailers and purchase large quantity from Manufacturer at a Discount
- Facilitates dropshipping
- Delivers to the customer directly
This is all about classification of Wholesalers.