Question

Justify the following statement.

Wholesaler is a link between retailer and manufacturer.

Answer 1

1. Wholesaler and retailers are important intermediaries in trade.
2. They help to bring the goods from the manufacturer to the ultimate consumer.
3. A wholesaler is a trader who deals in large quantities i.e. the wholesaler purchases the goods in bulk from the manufacturer and sells it to retailers in small quantities.
4. Both the Wholesalers and retailers are the part of chain of distribution which is shown below. Producer → Wholesaler → Retailer → Consumer
5. Thus, it is true that Wholesaler is the link between the manufacturer and the retailer.