Explain the roles of retailers and wholesalers as members in a distribution channel.

What will be an ideal response?


Answers will vary.Many producers sell their goods through multiple channels of distribution. Some channels have many members, while others have only a few. The main distinction among channel members is whether they are retailers or wholesalers. Retailers are the distributors that most of us know and use on a daily basis. They sell products directly to final consumers. Examples include 7-Eleven markets, Starbucks, and Urban Outfitters. Wholesalers, on the other hand, buy products from the producer and sell them to businesses (or other nonfinal users such as hospitals, nonprofits, and the government). The businesses that buy from wholesalers can be retailers, other wholesalers, or business users. In other words, some distributors act as both wholesalers and retailers.Costco, for example, sells directly to businesses and to consumers.

Business

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