Wholesale and retail are two significant components of the distribution process. When a company manufactures any product 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 sells 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 as the final consumer and only sells 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.
Difference Between Wholesale and Retail
| Wholesalers | Retailers |
|---|---|
| 1. Wholesalers buy from manufacturers and sell goods to retailers. | Retailers buy from wholesalers and sell goods to consumers. |
| 2. Wholesalers usually sell on credit to retailers. | Retailers usually sell for cash. |
| 3. They specialize in a particular product. | They deal in different kinds of goods. |
| 4. They buy in bulk quantities from the manufacturers and sell in small quantities to retailers. | They buy small quantities from the wholesalers and sell in smaller quantities to the ultimate consumers. |
| 5. Wholesalers always deliver goods to the doorstep of retailers. | Retailers usually sell at their shops. They provide door delivery only at the request of the consumers. |
| 6. A wholesaler needs mainly a godown to stock the goods he handles. | A retailer needs a shop or a showroom to sell. |
| 7. A wholesaler goes to different places to supply. | A retailer usually sells at a particular place. Sometime he may have branches in other areas. |
| 8. A wholesaler need not provide shopping comforts like luxurious, interiors, provision of air-conditioning, trolleys, etc. | A retailer usually provides shopping comforts mainly to attract customers. |
