WHOLESALE INTERMEDIARIES

Manufactur Retailer Consumer

Wholesaler
er

Retail sale: sale of goods and services to

consumers for their own use (B2C).
Wholesale sale: sale of goods and services to
businesses and institutions, like schools or
hospitals, for use in the business, or to
wholesalers or retailers for resale. (B2B)
MERCHANT WHOLESALERS

Are independently owned firms that

take title to the goods they
handle. Types of merchant
wholesalers: full-service and
limited-function.
Three common types of limited-
function wholesalers are rack
jobbers, cash-and-carry
wholesalers, and drop shippers.
 Rack jobbers: Wholesalers that furnish racks or
shelves full of merchandise to retailers, display
products, and sell on consignment.
Cash-and-carry wholesalers: Wholesalers that serve
mostly smaller retailers with a limited assortment
of products.
Drop shippers: Wholesalers that solicit orders
from retailers and other wholesalers and have the
merchandise shipped directly from a producer to a
buyer.
AGENTS AND BROKERS

While merchant wholesalers earn a profit from the sale of goods, agents and
brokers earn commissions or fees based on a percentage of the sales revenues.
Agents often maintain long-term relationships with the people they represent
(manufacturers), whereas brokers are usually hired on a temporary basis.
RETAIL DISTRIBUTION STRATEGY

Intensive distribution: Distribution that

puts products into as many retail outlets
as possible. Convenience goods, popular
magazines.
Selective distribution: Distribution that
sends products to only a preferred group
of retailers in an area. Appliances,
furniture, clothing.
Exclusive distribution: Distribution that
sends products to only one retail outlet
in a given geographic area. Luxuries,
specialty goods.
NONSTORE RETAILING

Electronic retailing: Selling goods and

services to ultimate customers over the
Internet.
Social commerce: A form of electronic
commerce that involves using social media,
online media that supports social
interaction, and user contributions to
assist in the online buying and selling of
products and services.
Other categories: telemarketing; vending
machines, kiosks, and carts; direct selling;
multilevel marketing; and direct marketing.
OTHER CATEGORIES OF NONSTORE RETAILING

Telemarketing
Vending machines, kiosks, and carts
Direct Selling
Multilevel Marketing (MLM)