The distinction between Wholesaler and Retailer are:
(i) Link:
A wholesaler serves as a link between producers and retailers. On the other hand, a retailer provides a link between wholesalers and consumers. Wholesaler is the first link, whereas retailer is the last link in the chain of distribution of goods.
(ii) Scale of operations:
A wholesaler carries on business on a large scale and requires huge capital. A retailer, on the other hand, deals generally on a small scale and capital invested in retail trade is relatively small.
(iii) Range of goods:
A wholesaler generally deals in one commodity. But a retailer deals in a large variety of goods and caters to the diverse needs of his end customers.
(iv) Dealings:
A wholesaler generally sells goods to retailers on credit. But a retailer usually sells goods to end consumers on cash basis.
(v) Purpose of selling:
A wholesaler sells goods for resale. On the other hand, a retailer sells goods for ultimate consumption or use.
(vi) Source of supply: 
A wholesaler buys goods from manufacturers and their agents. in large quantities. On the other hand, a retailer generally buys goods from wholesalers and their agents in small quantities.
(vii) Location:
A wholesaler operates his business in big commercial cities and expand his business to different areas. A retailer operates in the smallest village and also big cities and locates his business in particular place of area.

The channels based on the type of goods and services are: 
(i) Consumer goods distribution channels:
Fast moving consumer goods (FMCG) like provision items, clothes, etc. every Customer buys to utilize and exhaust them. Next day or week or month fresh purchases need to be made. There are durable goods used by consumers like refrigerator, television, LED bulbs, fan, laptop etc. They are used continuously for years together. Next purchase is made after some years. Further, they need to be installed, serviced and spare parts for replacement. The retail stores for FMCG goods are far more in number than durable goods retailers. But the distribution channels are the same for both of them.
(ii) Industrial goods distribution channels:
Industrial machinery and equipment need shorter channel of distribution. The industries that use the products are less in number. Technical support from producer or dealer is required for installation, operation, and maintenance of the machinery. The producer sells the machinery through his salesmen or authorized dealers. MRI - Magnetic Resonance Imaging Scanner used in hospitals to produce images of body structures are sold through authorized dealers or wholesalers to customers.

Auctioneers are agents who sell goods by auction on behalf of their principals. Auction sale is made through a notification to the public. The notice clearly mentions the date, time, place and details of goods which will be widely published through newspapers, posters, leaflets and announcements etc., Auction sale may be "WITH RESERVE" and "WTIHQUT RESERVE". In case of auction "WITH RESERVE" no sale can take place below the miriimum price fixed by the seller, which is known as "Reserve Price". In case of auction "WITHOUT RESERVE" the auctioneer is bound to sell the product to the highest bidder. The price for which the bid is accepted is called "knocked down price". Striking a hammer on the desk indicates the acceptance of a bid by auctioneer. After the highest bid is accepted, the auctioneer becomes the agent for both the seller and the buyer. For his services, the auctioneer, is entitled to receive a commission; which is a certain percentage of the sale proceeds.

The types of channel of distribution are as follows;
1. Channels based on the middlemen
2. Channels based on the type of goods and services
3. Channel based on national and international market

Merchant wholesalers are a wholesaler who takes title to the goods. They are also sometimes referred to as distributors, dealers and jobbers. Merchant wholesalers are of two types. They are
i) Full-Service Wholesalers
ii) Limited Service Wholesalers.
i) Full-service wholesalers
They perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit to buyers, employing salespeople to assist customers and delivering goods to customers.
ii) Limited services wholesalers
They offer fewer services to their customers but lower prices. They might not offer delivery services, extend their customers credit, or have sales forces that actively call sellers.

A wholesaler provides valuable services to manufacturers, producers, retailers and customers.
1. Economies in Large Scale.
2. Assistance in Distribution.
3. Warehousing Facility.
4. Forecasting of Demand
5. Publicity of Goods
6. Financial Assistance.
7. Risk-bearer
8. Link

The following are the characteristics of wholesalers :
1. The wholesaler buys goods directly from the producers or manufacturers.
2. Wholesalers buys goods in large quantities and sell in relatively smaller quantities.
3. Wholesaler sell different varieties of a particular variety of product
4. They employ a number of agents or workers for distribution of products.
5. They need large amount of Capital to be invested in his business
6. They generally provide credit facility to retailers.

Kinds of Mercantile Agents or Agent Middlemen:
1. Brokers
2. Factors
3. Commission Agents
4. Del-credere Agents
5. Auctioneers
6. Warehousekeepers.

A factor is a mercantile agent to whom goods are entrusted for sale by a principal. He takes physical possession of the goods, though he does not obtain ownership of the goods. A factor sells goods in his own name without revealing the name of his principal.

A channel is the route through which the goods are passed on to the ultimate consumer. There are direct channels or routes of distribution without middlemen. Indirect channel consists of one or more middlemen performing different functions. Middlemen help in the flow of goods towards the lakhs or crores of consumers.