What are the disadvantages of wholesale trade?
please help me ASAP !!!
Yogita,
The disadvantages of wholesale trade are explained below:
i) Large amount of capital- The wholesalers require a large amount of capital to purchase the goods from producers and he should be able to distribute the products to retailers i.e. must have enough contacts. This is because if he is unable to sell the product, he can't return it to producer.
ii) Need of warehouses- The wholesalers buy the products from the producers in a bulk quantity. These products are stored because they are not sold out by wholesalers in a single day. To store these products safely, wholesalers need to invest on warehouses.
The disadvantages of wholesale trade are explained below:
i) Large amount of capital- The wholesalers require a large amount of capital to purchase the goods from producers and he should be able to distribute the products to retailers i.e. must have enough contacts. This is because if he is unable to sell the product, he can't return it to producer.
ii) Need of warehouses- The wholesalers buy the products from the producers in a bulk quantity. These products are stored because they are not sold out by wholesalers in a single day. To store these products safely, wholesalers need to invest on warehouses.