Wholesaler receives orders from various retailers. It then places a large order to the producer and helps the producer in large scale sales.
- A wholesaler is in direct contact with several retailers spread across a vast geographical region.
This helps him to obtain information about demand of the product, its feedback, customer’s preference, fashion, etc. of various regions.
- The wholesaler then shares this information with the producer. The producer thus gains insight about market trend and market situation and keeps his product updated as per the market. Wholesaler purchases goods in large quantity. This saves producers from selling goods in smaller quantities to several people.
- For example, 10 letailers in total may need 500 books. One the other hand a wholesaler alone can buy 500 books and supply them to those 10 retailers. Hence, wholesaler serves as link between producer and retailer.
