Final answer:
The four types of wholesalers are merchant wholesalers, full-service wholesalers, limited-service wholesalers, and brokers and agents. Each type serves different functions in the distribution channel, offering various products and services.
Step-by-step explanation:
The four main types of wholesalers are:
- Merchant wholesalers – These are independent business entities that buy and take title to goods which they then resell to retailers, other wholesalers, or industrial, institutional, and commercial users. They typically handle a wide range of products and offer various services, such as delivery, credit, and marketing support.
- Full-service wholesalers – A subcategory of merchant wholesalers, they offer a full array of services, including stocking inventories, operating warehouses, and providing sales forces and credit to their customers.
- Limited-service wholesalers – In contrast to full-service wholesalers, limited-service wholesalers offer fewer services to their customers. This category includes cash-and-carry wholesalers, drop shippers, and truck distributors, each providing a specific type of convenience and cost-saving method.
- Brokers and agents – These wholesalers do not take title to the goods, but instead, facilitate sales and purchases by bringing buyers and sellers together. They earn commission or fees for their services, which can include negotiations, securing orders, and offering market expertise.