Wholesale markets are highly beneficial in many respects. They have a number of physical functions which provide multiple benefits. The first and foremost function of wholesale markets is that they result in faster introduction of innovation and new technology. As in a wholesale market, a large group of operators concentrate at the same place, innovation can be easily introduced and improved methods for storage, handling and management can be easily developed.

Wholesale markets provide numerous economic benefits. For instance, wholesale markets lead to stability in supply and sales of produce. They result in improved flow of information between various operators which reduces uncertainty in supplies and sales transactions. Wholesale markets enhance access of various actors to market information. Wholesale markets play a major role in enhancing price transparency and facilitating price formation. Also the wholesale markets enhance the competition which in turn improves the efficiency of the exchange process.

Yet another economic benefit of wholesale markets is that they improve inspection and quality control. Also the wholesale markets result in increased volume of produce being marketed and quality differentiation. Wholesale markets lower the cost of distribution for distributors. Also they result in a significant improvement in the sorting and grading of produce on the basis of quality.

Wholesale markets offer numerous advantages to transporters, traders and retail traders. For instance, wholesale markets lead to lower operating costs, saving of time, lower losses in produce, fewer controls and lesser illicit taxes. Wholesale markets also result in greater use of standard weights and measures. Also the wholesale markets considerably reduce the marketing risks.

In Short, wholesale markets play an important role in many aspects. Countries with active wholesale markets are economically strong. Therefore, every country should give a special consideration to its wholesale market and manufacturing sector to enhance foreign and local trade.