What is a Merchant Wholesaler?
A merchant wholesaler is a company that purchases goods from producers or manufacturers and resells them to retailers, other wholesalers, or industrial, commercial, institutional, or professional users. Merchant wholesalers are essentially middlemen between producer and end buyer.
Types of Merchant Wholesalers
There are several different types of merchant wholesalers:
- Full-Service Merchant Wholesalers: These wholesalers provide a variety of services, including storage, credit, display, and transportation services to their customers. They often buy a variety of goods from different producers and sell them to retailers.
- Limited-Service Merchant Wholesalers: These wholesalers often only provide limited services such as storage, transportation, and display services. They usually focus on one specific product or product line.
- Manufacturer-Sponsored Merchant Wholesalers: These wholesalers are partially owned by a producer and specialize in selling that producer’s products.
- Cash-and-Carry Merchant Wholesalers: These wholesalers focus on low-cost, low-margin products and require customers to pay cash and take the goods away themselves. These wholesalers often operate in retail stores.
Benefits of Merchant Wholesaling
Merchant wholesalers provide a range of benefits to producers and retailers. For producers, merchant wholesalers can provide access to a wider range of markets than a producer could access on their own, and can also provide access to capital and expertise in marketing, storage, transportation, and other areas. For retailers, merchant wholesalers can provide access to a wider range of products, as well as convenience in ordering and payment.
Conclusion
Merchant wholesalers are an important part of the supply chain, providing producers and retailers with access to capital, expertise, and a wider range of markets. There are several different types of merchant wholesalers, each providing different services and specializing in different products. For more information, please visit the following links: