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Types of Wholesalers
Types of Wholesalers
Merchant Wholesalers
They often specialize in a certain type of products in a relatively small geographic area and several wholesalers
compete for the same set of customers.
a. General Merchandise Wholesalers (sell different product types) eg: Food Products, Personal
Care, Cleaning products, etc.
b. General Line Wholesalers (wide variety in one product line) eg: focusing only on a wide range of
personal care products like soaps, shampoos, cosmetics, perfumes, facewash, deos etc.
c. Specialty Wholesalers (selling only specific products) eg: selling only deos or facewash
Retail Wholesalers
• They sell goods to small retailers as well as end consumers
• Usually located in wholesale trading locations
• They don’t provide any delivery service
• Cash and carry model of business. Usually, no credit is given to the customer
Agents and Brokers
Serve as a link between the seller and buyer. They receive a commission from the seller for the business
transacted. Eg: Insurance Agents, Tours & Travel Agents, Real Estate Agents, etc.
Truck Wholesalers
Sell a limited line of perishable products like vegetables, fruits or pulses from their vehicles and sell on a cash
basis to small retailers, hawkers, and consumers.
Drop Shippers
They operate in products like coal, timber, metals, etc..
They do not carry inventory
When they receive an order, they select a seller who directly ships the goods to the customer.