These compose the type of wholesalers who basically buy a large amount of product and later on resell them to the retailers. The other type is called, functional intermediaries who are responsible in speeding up the transaction between the retailers and the producers or manufacturers for a certain amount of compensation.
Wholesale intermediaries are responsible for customers to have the product that they need. Without these wholesalers, people would need to buy straight from the manufacturers which is a hassle for both the consumer and the manufacturer. This is a problem, since people would need to buy a small amount of product in different manufacturers which are in different and scattered places.
With respect to the possible effect of wholesale intermediaries to retailers, it is actually a mutual benefit for both party. First, the process of transfer of goods would be a lot faster and easier. Retailers would not need to buy product in different manufacturers but instead they could get different products in a single place. Also, since the purchase of product of the wholesaler is usually discounted, retailers could derive the product in a nearer place thus, reducing the amount that could have been spend for transportation if wholesalers are not present.
The emergence of internet has helped retailers and wholesalers alike to get to the customers more efficiently. ...Show more