# What is the Difference Between Wholesale and Retail
In the supply chain industry, wholesale and retail are two major components of the distribution process. When a company manufactures any products it is first sold in bulk quantity to the wholesaler, who then sells it to the retailer and further the retailer sells it to the ultimate customers. In simple words, a wholesaler buys the product in bulk from the manufacturer and sell it to the retailer, who then sells it to the end-users.
Wholesaler’s main aim is to sell goods to businesses or retailers and they sell it further. On the other hand, a retailer targets the audience is the final consumer and only sell goods only to them.
These two business links are important mediators of the marketing channel. If any of these links are absent, the entire supply chain will get disrupted. In this article, we will explain the significant differences between wholesale and retail.
# Wholesale vs Retail:
Wholesale is selling of goods in bulk to the retailers and businesses at cheaper rates. The wholesaler buys the products in bulk, breaks it into small parts, repacked, and sells it to the retailers. The wholesaler sells only specific items and is least interested in the location of the shop, packaging, and display of the goods. They are more interested in the quantity not the quality of a product.
For wholesale business, considerable investment is required, and not the promotion and advertisement. The customers of the wholesale are spread in various cities, town, and different states. Most of the purchases are sold through credit to the customers.
A wholesale shop should have a license to sell the goods only to the retailer and usually not available to the customer. However, if the customer wants to buy a product from the wholesaler directly them they will be charged higher as compared to the retailer. Usually, a wholesaler sells only one product or a category of products, so that they can focus on one kind of business for their goods.
Wholesale is selling of goods in bulk to the retailers and businesses at cheaper rates. The wholesaler buys the products in bulk, breaks it into small parts, repacked, and sells it to the retailers. The wholesaler sells only specific items and is least interested in the location of the shop, packaging and display of the goods. They are more interested in the quantity not the quality of a product.
For wholesale business, considerable investment is required, and not the promotion and advertisement. The customers of the wholesale are spread in various cities, town, and different states. Most of the purchases are sold through credit to the customers.
# What is Retail?
When buyers buy a product and sell it to the final customers for their consumption, and not for any resale, this is known as Retail. The retailers are the mediator between wholesaler and customers. They purchase goods from the wholesaler and sell them to the ultimate customers in small quantity.
The profit margin in the retail business is high as the retailer buy goods at cheaper rates and sell them to the customers at a higher price. The final price in which the retailers sell the product includes expenses such as rent, electricity, salaries of workers, etc.
This article is ready to reckoner for all the students to learn the difference between Wholesale and Retail.
# Types of Wholesaler
Merchant Wholesaler-This type of whole selling involves the purchase of a product in larger quantity, stock it, and sell it smaller batches or quantities. This smaller portion of selling is also known as wholesale, however, they are broken up for retailers to purchase in smaller batches.
Agent/Brokers- They don’t own the goods they’re selling but bargains on behalf of the wholesaler so that they get the best price possible and they get the commission for each sale.
Sales and Distribution for Manufacturing – They are a sales team and distributors representing the manufacturers in getting goods out in the wholesale market.
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