What role do wholesalers play in the distribution process?

Wholesalers serve a critical function in the distribution process by acting as intermediaries between manufacturers and retailers. Their primary role involves purchasing large quantities of products from manufacturers, which allows them to benefit from economies of scale. After acquiring these products, wholesalers sell them in smaller quantities to various retailers, facilitating the transfer of goods from producers to the market.

This system streamlines the distribution process, enabling manufacturers to focus on production while leaving the complexities of inventory management and logistics to wholesalers. By handling the distribution, wholesalers ensure that retailers have the inventory they need to meet consumer demand without requiring them to buy in bulk directly from manufacturers. This not only helps stabilize pricing and availability but also increases the efficiency of the entire supply chain.

The other options do not accurately describe the role of wholesalers. For instance, wholesalers do not typically manufacture products, nor are they focused on direct sales to consumers. Additionally, while they may influence pricing indirectly through bulk purchasing and distribution strategies, they do not have control over retail pricing; that responsibility lies primarily with the retailers themselves.