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How does the wholesaler help the manufacturer in availing the economies of scale?

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The wholesaler helps the manufacturer in availing the economies of sale by helping in the transfer of goods from producers to retailers. The  Wholesaler provides economic assistance, storing facilities, advertisement facilities and makes the manufacturer free from distribution difficulties. These services decrease the workload of manufacturer and make him able to avail the economics of sale.   Wholesale trader purported to a trader who buys the good on bulk quantum from the producer or manufacturer and sold it to retailers in meagre quantum according to the demand raised by them time to time. Thus , this trader is neither the producer nor the retailer but an important link between both. The wholesaler serves the producer and retailer both. The Wholesaler asks suggestions from the retailers and provide the manufacturer with the important informations time to time.

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