discuss the various arguments in favour of and against elimination of wholesalers from channels of distribution

Arguments in favour of elimination of wholesalers are as follows.

1) Wholesalers increase the prices of products by adding their margins and marketing costs in the final prices of products.
2) They make the distribution process slow by acting as a middlemen between producer and consumer.
3) Wholesalers, sometimes, exploit the market by acting as a monopoly if they are the sole distributor of a product in a particular market.

Arguments against the elimination of wholesalers are as follows.

1) Wholesalers allow the retailers to purchase the goods on credit and hence, their elimination would make retailers worse-off.
2) Wholesalers provide warehousing facilities to the manufacturers to protect the produced goods from natural calamities and theft.
3) They help in marketing and distribution  of goods over large geographical areas.

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