Wholesalers are person or company who buy a lot of goods and services from Manufacturers and sell those goods to retailers. Wholesalers act as an agent or intimidator between manufacturers and retailers.To become wholesalers it requires a large amount of investment because wholesalers have to buy plenty of goods and services and they also need warehouses to store those goods. wholesales determines the price for resale because the supply of goods is in hand of wholesalers.
The most important function of wholesalers is breaking of bulk. As we know wholesalers have to buy goods in large quantity from manufactures but it has to sell goods to retailers in small amounts as demanded by different retailers at different places. we can also term breaking of bulk as a dispersion of goods to different retailers at different places.
Wholesalers are also risk bearer because any damage to goods in a warehouse or in transit is bear by him. The risk of wholesalers is also increased because he provides finance to both retailers and manufacturers. Sometimes wholesalers give credit facility to retailers and in case of any bad debt from any of retailers, wholesalers have to suffer a loss.