Collection and Storage of Goods, Distribution, Financing and Risk Taking

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Following are the functions, which a wholesaler usually performs.

Functions of Wholesalers

Functions of Wholesalers

Functions of Wholesalers

Collection of Goods

A wholesaler collects goods from manufacturers or producers in large quantity.

Storage of Goods

A wholesaler collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage.


A wholesaler sells goods to different retailers. In this way, he also performs the function of distribution.


The wholesaler provides financial support to producers and manufacturers by providing money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the wholesaler acts as a financier.

Risk Taking

The wholesaler buys finished goods from the producer and keeps them in the warehouses till they are sold. Therefore, he assumes the risks arising out of changes in demand, rise in price, spoilage or destruction of goods.


He classifies the goods in different categories since all the collected goods are not of same quality. He grades the goods on the basis of quality, size and weight etc. He also undertakes packaging of goods which facilitates trade. Some wholesalers also perform the function of branding. They give brand names to the products they deal in.


The final prices are set by the wholesalers. They provide stability to the prices by regulating supply of goods in accordance with the demand for them. They influence market conditions, the demand for the goods and the taste of the people and make necessary arrangements to meet the demand when it comes up.


Retailers are the traders who buy goods from wholesalers or sometimes directly from producers and sell them to the consumers. They usually operate through a retail shop and sell goods in small quantities. They keep a variety of items of daily use.

Characteristics of Retailers

The following are the characteristics of retailers:

Characteristics of Retailers

Characteristics of Retailers

Characteristics of Retailers

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