Can You Define Merchant Wholesalers?


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Merchant wholesalers
The merchant wholesalers are the middleman who take little to goods (purchase) and sell them to retailers for further selling individual consumers on piece meal basis. The merchant wholesalers purchase the commodities in bulk, operate warehouse for storage, offer credit and goods to the retailers. They also sometimes offer advice to the market retailers as well as producers. The merchant wholesalers are further sub divided into two main categories:

1) full line wholesalers
Full line wholesalers are those who supply a complete line of goods to a business. For example, a hospital supply company may supply all the requirements of the hospital alone. Or a grocery supplier may carry a full stock of grocery goods etc.
2) limited line wholesalers
The limited line wholesalers perform limited functions than do merchant wholesalers. They specialize in a limited line of products such as auto spare parts and sanitary goods and washing machines. The limited line wholesalers are mainly of four kinds:
1. cash and carry wholesalers
They supply goods to the retailers on cash.
2. truck jobbers
They are the one who deliver the goods to the retailers from their trucks and wagons.
3. rack jobbers
They generally supply health and beauty aid to the super markets.
4. drop shippers
They instead of having an inventory, ship the goods direct from the factory to the pre arranged retailers.

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