Business Studies – 3.3.3 Place | e-Consult

Wholesalers act as intermediaries between manufacturers and retailers. Benefits for the supplier include access to a wider market, reduced marketing and distribution costs, and bulk orders. Drawbacks for the supplier are lower profit margins and less control over how products are displayed and sold. Benefits for the retailer include a reliable supply of goods, variety of products, and support with marketing and promotion. Drawbacks for the retailer are potentially higher purchase costs and less direct contact with the manufacturer. For the end consumer, wholesalers indirectly contribute to lower prices through economies of scale, but the consumer may not have direct access to the products or detailed information about them. Retailers, on the other hand, sell directly to the end consumer. Benefits for the supplier include higher profit margins, direct feedback from customers, and control over branding and presentation. Drawbacks for the supplier are the need to manage a larger and more complex distribution network and potentially lower sales volume compared to using wholesalers. Benefits for the retailer include higher profit margins and direct control over the customer experience. Drawbacks for the retailer are the higher costs associated with purchasing goods and managing inventory. For the end consumer, retailers offer convenience, a wider range of products, and the opportunity to see and try products before buying.