An advantage of selling products to a wholesaler is that you can send everything to one place, as a wholesaler would have the space required to store the products. It is very simple, as you only get one invoice, instead of lots if you sell your products to another place. Advertising would be easier, as your product would be advertised with other products, they would advertise for you. There are disadvantages too- it takes time for the products to be available to be sold- buy that time, the product may not be in as good situation to sell, for example foods and drinks, cakes could be stale, and milk could have gone out of date.
Likewise, if you want a change of products, it would take time to re-stock the new products. Channel of Distribution For example, if a producer produces Children’s clothing for export, it would go down the agent, wholesaler then retailer to consumer route. This is because the clothing is made in other countries, and communication and explanation would be needed by the agent. Then, the products could be sold to a wholesaler, which is then sold to lots of other retailer, then to the consumer.
Tractors- this would be sold to the retailer directly, this would save time as things like these products come out very quickly, so it needs to be sold quickly after manufacturing. Tins of peas- This would be sold to a Wholesaler, then the retailers, this means that the products can be sold in more places, and tinned products don’t expires for years after manufacturing, so time can be taken for this to happen. Made-to-measure-suits -This would be sold directly from the producer to the consumer, as time cannot be stretched too far here. Also, the consumer would have to send information- for example measurements to the producer directly.