Wholesalers provide essential services that help manufacturers in the distribution process. Firstly, they facilitate large scale production by collecting small orders from various retailers and pooling them for the manufacturer. This enables producers to undertake production on a large scale and benefit from economies of scale. Wholesalers also provide financial assistance by making cash payments or advancing money, which prevents the manufacturer's capital from being blocked in stocks. Additionally, they bear risks such as theft, spoilage, or price fluctuations once they take delivery of the goods.

Secondly, wholesalers help in the marketing function by distributing goods to retailers over a wide geographical area, allowing manufacturers to focus on production. They offer expert advice to manufacturers regarding customer tastes, preferences, and market conditions based on their direct contact with retailers. Finally, they facilitate continuity of production by purchasing goods as they are produced and storing them, ensuring the production process continues smoothly throughout the year.