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Homework answers / question archive / What are the two-channel intermediaries and briefly discuss the most prominent difference separating the two-channel intermediaries?

What are the two-channel intermediaries and briefly discuss the most prominent difference separating the two-channel intermediaries?

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What are the two-channel intermediaries and briefly discuss the most prominent difference separating the two-channel intermediaries?

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The two most common channel intermediaries are retailers and wholesalers, which are used for selling the products.

The common differentiating features are listed as follows:

  • Type of customers: Wholesalers transact in B2B channel; that is, the customers for wholesalers are industries, retailers, service providers, and manufacturers. However, retailers transact in the B2C channel; that is, retailers provide goods to end-users.
  • Previous chain: Generally, wholesalers purchase goods from manufacturers; whereas, retailers buy goods from wholesalers.
  • Display: Wholesalers do not need showrooms and a large area for the display of goods; whereas, retailers display the products in various ways to promote sales. Thus, retailers require larger space in comparison with the quantity of the goods kept by them in comparison with wholesalers.
  • Variety of goods: In general, retailers offer a wider variety of goods, and they purchase their products from multiple wholesalers. However, wholesalers keep a comparatively less variety of goods.
  • Quantity of a particular good: Retailers have a lower quantity of a particular good, in comparison with wholesalers.
  • Price: Prices offered by wholesalers are lower than the prices offered by retailers. Wholesale prices are lower so that retailers can add their profit margin and resell the product to the consumers. Wholesalers also provide various types of discounts and credit facilities to the retailers. However, retailers do not provide such bulk discounts to customers.
  • Location: Retailers have their shops or showrooms in the market which are easily accessible to the consumers, whereas wholesalers are generally located near railway stations, ports, and places where bulk material could be easily transported.
  • Services: Retailers provide a variety of support and after-sale services; however, wholesalers do not generally offer such services.