What is the Difference Between Wholesale and Retail

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.

What is Wholesale?

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.,

Frequently Asked Questions on Wholesale and Retail

why wholesale is cheaper?

The wholesale is cheaper because they buy the products in bulk directly from the manufacturer and get large discounts for buying large quantities of goods.

What do you mean by wholesale price?

A wholesale price is the price imposed for a product when sold in bulk to the distributors or large traders.

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