Manufacturer-Wholesalers-Retailers-Customers
Business: Cambridge International GCSE (2027 Exams), topic 3.3.11
Manufacturer-Wholesalers-Retailers-Customers
A business can distribute their product via wholesalers. Wholesalers sell products in bulk to a network of retailers and then retailers sell the products to customers.
Large network of buyers
- Wholesalers already have a large network of buyers.
- This lets a business reach a lot of customers quickly.
Less interaction with customers
- A downside of using wholesalers is that the business will not have much personal interaction with customers.
- This can lead to worse customer service.
Profit sharing
- Another downside is that both wholesalers and retailers take a cut of the profit. This means that customers are likely to pay higher prices.
- This may make the business less competitive on price.
Test yourself on Manufacturer-Wholesalers-Retailers-Customers
Which of the following is not a disadvantage of wholesalers?
Why can wholesalers lead a business to have worse customer service?