The document discusses different types of wholesalers and intermediaries in the wholesale industry. It outlines merchant wholesalers, manufacturers' sales branches and offices, brokers and agents, and commission merchants. Merchant wholesalers independently take title to the goods they handle and can be full-service or limited-service. Manufacturers' sales branches sell goods directly rather than through independent wholesalers. Brokers and agents facilitate sales but do not take title to goods. Commission merchants buy and sell goods for others on a commission basis.
2. Learning Outcomes
Explain meaning of wholesaling & wholesaler?
Explain types of wholesalers?
Explain Brokers and agents, commission merchants?
3. Concept
Wholesaling :-
All activities involved in selling goods and services to those buying
for resale or business use.
Wholesaler :-
A firm engaged primarily in wholesaling activities.
Wholesalers buy mostly from producers and sell
mostly to:
Retailers,
Industrial consumers, and
Other wholesalers.
5. Types of Wholesalers
5
Merchant Wholesaler
Independently Owned
Business that Takes Title to the
Merchandise it Handles.
Manufacturers’ Sales
Branches and Offices
Wholesaling by Sellers or Brokers/ Agents
Buyers Themselves They Don’t Take Title to
Rather Than Through the Goods, and They
Independent Perform Only a Few
Wholesalers. Functions.
6. Merchant wholesalers
Full- service wholesalers
-Wholesalers merchants
- Industrial distributors
Limited-service wholesalers
- Cash and carry wholesalers
- Drop shippers
10. Brokers and agents
Brokers:-
An individual or firm which acts as
an intermediary between a buyer and seller, usually
charging a commission. For securities and most
other products, a license is required.
Ex: - food brokers
real estate brokers
insurance brokers
security brokers
11. Agents
Represent either buyers or sellers on a more
permanent basis than brokers do.
Ex:- Textiles agent
12. Manufacturers’ agents
An agent representing one or more manufacturers in
selling related
but noncompeting goods, usually on a commission basis
and in a particular territory.
Ex:- Reliance fresh,more
13. Selling agent
someone who sells goods (on commission) for
others.
A person who sells something for someone else,
generally in return for a commission based on a
percentage of the sale price.
Ex:- Industrial machinery and equipment
14. Purchasing agent
An agent who purchases goods or services for
another.
The purchasing agent is required to know
about the various purchasing policies and the
techniques.
Ex:- LIC agent
Tata company agent
15. Commission merchants
A person who buys or sells goods for others on a
commission basis.
EX:-
Farmers and manufacturers who have large
quantities of goods to sell send them to the cities to
the commission merchant, who sells them for them.