Wholesaling
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
Producer does all wholesaling functions
Reasons for use
Independent intermediaries unavailable
Existing intermediaries unacceptable
Control
Few customers
Personal service
Proximity or clustered
Computerized ordering
Merchant Wholesaling
Wholesalers that buy, and take title and
possession of products for further resale
Full service
Limited service
Full service merchant
wholesalers
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
Carry a wide product assortment, nearly
all of the items needed by their
customers
Full Service Merchant Wholesalers:
Specialty Merchandise Wholesalers
Concentrate on a narrow product range
but have an extensive selection within
that range
Full Service Merchant wholesalers:
Rack Jobbers
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
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
Owned by member firms to economize
functions and provide broad support.
May be owned by producers and
retailers
Limited Service Merchant
Wholesalers
Perform some, but not all, of the
functions performed by a full service
wholesalers
Cash and carry wholesalers
Drop shippers
Truck/wagon wholesalers
Mail order wholesalers
Agents and brokers
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
Work for several manufacturers or
service providers and carry
noncompetitive or complementary
products in exclusive territories
Agents and brokers:
Selling agents
Responsible for marketing the entire
output of a manufacturer/ service
provider under a contractual
agreement.
Other agents and brokers:
Commission (factor)
Food brokers
Commercial stock brokers