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Definition

Merchant wholesaler

Definition (1):

Merchant wholesaler is an independently owned wholesale business that takes title to the merchandise it handles.

Definition (2):

It means a marketing intermediary that takes ownership of goods and the risks associated with ownership then sells the goods to retailers, other wholesalers, or industrial users.

Definition (3):

“A merchant wholesaler is an institution that buys goods from manufacturers and resells them to businesses, government agencies, other wholesalers, or retailers.” They take ownership of the merchandise they sell.

These wholesalers are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling. They include two broad types: full-service wholesalers and limited-service wholesalers. Full-service wholesalers provide a full set of services, whereas the various limited-service wholesalers offer fewer services to their suppliers and customers. The different types of wholesalers offer fewer services to their suppliers and customers. The different types of limited-service wholesalers perform varied specialized function in the distribution channel.

Use of the term in Sentences:

  • The business with which you are thinking of merging is a merchant wholesaler.
  • Jim started this business a few years ago and now it has become a well-known and reliable merchant wholesaler.
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