Wholesaling
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Encompasses the buying and/or
handling of good and services and their
subsequent resale to organizational
users, retailers, and/or other
wholesalers- but not the sale of
significant volume to final consumers
Manufacturer/service provider
wholesaling
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Producer does all wholesaling functions
Reasons for use
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Independent intermediaries unavailable
Existing intermediaries unacceptable
Control
Few customers
Personal service
Proximity or clustered
Computerized ordering
Merchant Wholesaling
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Wholesalers that buy, and take title and
possession of products for further resale
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Full service
Limited service
Full service merchant
wholesalers
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Perform a full range of distribution
tasks, including credit, storage and
delivery, merchandising and promotion,
a personal sales force, research and
planning, and passing information to
suppliers and customers, installation
and repair
Merchant wholesalers:
General merchandise wholesalers
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Carry a wide product assortment, nearly
all of the items needed by their
customers
Full Service Merchant Wholesalers:
Specialty Merchandise Wholesalers
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Concentrate on a narrow product range
but have an extensive selection within
that range
Full Service Merchant wholesalers:
Rack Jobbers
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Furnish the racks or shelves on which
the product are displayed
Often own the products and sell on a
consignment basis
Jobbers fill the shelves, mark goods,
maintain inventory, and compute
amounts due
Cosmetics, drugs, stationary
Full service merchant wholesalers:
Franchise wholesaling
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Independent retailers affiliate with an
existing wholesaler to use a
standardized storefront design, business
format, name and purchase system
Full service merchant wholesalers:
Wholesale cooperatives
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Owned by member firms to economize
functions and provide broad support.
May be owned by producers and
retailers
Limited Service Merchant
Wholesalers
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Perform some, but not all, of the
functions performed by a full service
wholesalers
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Cash and carry wholesalers
Drop shippers
Truck/wagon wholesalers
Mail order wholesalers
Agents and brokers
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Perform various wholesale tasks, but do
not take title to products
Work on commission or fees
Agents and brokers: Manufacturer’s
or Service provider agents
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Work for several manufacturers or
service providers and carry
noncompetitive or complementary
products in exclusive territories
Agents and brokers:
Selling agents
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Responsible for marketing the entire
output of a manufacturer/ service
provider under a contractual
agreement.
Other agents and brokers:
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Commission (factor)
Food brokers
Commercial stock brokers