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Short Answer Questions · Q4

Q.State any four services rendered by a wholesaler to a retailer.

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✓ Free question

A wholesaler renders several distinct services to the retailers it supplies, of which any four fully answer this question:

  1. Breaking bulk — makes goods available in lot sizes a small retailer can actually afford and store, instead of forcing the retailer to buy factory-scale quantities.
  2. Credit facility — extends credit to retailers, many of whom operate on thin working capital, easing their cash-flow burden.
  3. Wide assortment under one roof — stocks the products of several different manufacturers within a line, letting a retailer fulfil most of their buying needs for that line from one source.
  4. Market guidance — advises retailers on new products, prevailing prices and fast-moving lines.
  5. Storage relief — since the wholesaler holds the bulk stock, the retailer does not need large godown space of their own.
  6. Quicker, more local delivery — being geographically closer to the retailer than a distant factory, the wholesaler can typically deliver replacement stock faster.
✓Final answer

Any four of: breaking bulk into affordable lots; extending credit; offering a wide multi-manufacturer assortment; providing market/price guidance; relieving the retailer of storage; and quicker, more local delivery of replacement stock.

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