There are different types of wholesalers whose main function is to provide the wholesale items and perform wholesale activities. It is hard to define their job and differentiate them on work basis. Wholesalers are distinguished as manufacturers, merchants, dealers or distributors. Wholesalers are firms whose main function is concerned with those persons who sell to retailers, merchants, commercial users but do not sell in large amounts to final consumers. Being a manager, you must understand the nature of activities, wholesalers undertake and their strategies. Following are the few types of wholesalers and their activities: Merchant Wholesalers These wholesalers own businesses that take title to the products they sell or merchandise. Merchant wholesalers specialize by certain types of products and are customers-specific so their services usually cater small geographic areas. They are full-service and limited-service jobbers. General Merchandise Wholesalers These kinds of wholesalers usually cater the early retailers like general stores and deal in the categories like hardware, drugs, cosmetics, general electric supplies and automobile equipments. The areas where they can serve have become more distinct now. Specialty Wholesalers These are the specialized wholesalers who deal in a specific range of items and offer more specialized services than general merchandise wholesalers. Specialty wholesalers often know closely to their final customers and understand their needs. For example, the leading wholesale suppliers of books, consumers in different geographic areas are interested in different kinds of goods and these suppliers fulfill this demand. Brokers and Agents Facilitate buying and selling, on commission of 2% to 6% of the selling price; limited functions; generally specialize by product line or customer type. Brokers bring buyers and sellers together and assist in negotiation; paid by the party hiring them. Different kinds of brokers exist to facilitate different industries. Agents represent buyers or sellers on a more permanent basis. Most of the agents are small businesses with a few skilled salespeople. There are different kind of agents same like brokers. Drop-shippers The wholesalers who take title to the merchandise they handle, but they do not handle stock or deliver them directly. Drop-shippers are mainly involved in selling as they get orders from other wholesalers, retailers, industries and other business users. Drop-shippers do not handle products, so their operating budget is lower than other wholesalers, therefore manufacturer ship products directly to the customers. But the manufacturer who takes over wholesaling activities is not considered as wholesalers.
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