What are the Types of Wholesalers?



Wholesalers may fall into any of the following categories:-

Merchant wholesalers. This is a middleman that purchases goods in large quantities and sells them to other wholesalers, retailers or industrial users. They usually operate one or more warehouses where they receive take title and store goods. They are also called Jobbers

Commission Merchant (Factor). A commission merchant is the one who carries merchandise and negotiates sales for manufacturers, but he doesn’t take title to the goods he sells. They have the power to get prices and terms of sale. They have to provide transport services

An agent. Is a middleman that facilitates exchanges, represents a buyer or a seller and often is hired permanently or on a commission basis. An agent may represent one or several manufacturers within a specified territory. The manufactures ship the goods and bill the customers directly. The manufacturers also set the prices and other conditions of the sales.

Broker. Is a middleman (agent) who works on behalf of principal. Does not take physical possession of the goods and are not responsible for delivery but arrange deals between buyer and seller. The sellers generally pay them on commission.

Cash and Carry wholesalers. These are wholesalers who do not allow credit purchases and do not usually offer transport facilities. They usually operate on local markets.

Del-Credere agents. These agents guarantee a sale for their principals. They are paid extra commission because they run the risk of being left with goods on their hands. They hold themselves personally liable for the default of the customers

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