Types of wholesalers
Manufacturer Wholesaler: This type of wholesaler undertakes production of goods as well as their distribution to retailers. Usually, he does not deal in goods manufactured by other firms. He is in a position to minimize the overhead expenses on transportation, warehousing etc, by combining manufacturing and distribution activities.
Retail Wholesaler: He sells to retailers as well as to ultimate consumers. He combines wholesale and retail activities. This enables him to establish direct contact with the consumers and to reduce the costs of distribution. He is in a position to know the preferences of consumers.
Pure Wholesaler: A pure or true wholesaler does not engage in production business or retail trade. He concentrates on buying from manufacturers and selling to the retailers. He is also Known as merchant wholesaler. He can better serve both producer and retailers. According to Evelyn Thomas, “a true wholesaler in neither a manufacturer nor a retailer but acts as a link between the two”,