This article will help you to learn about the difference between wholesaler and retailer.

Difference between Wholesaler and Retailer

Wholesaler

1. Purchase and Sale:

Wholesaler purchases goods from the producers and sells to the retailers.

2. Quantity:

Wholesaler purchases goods in large quantities.

3. Link:

Wholesaler is the link between producers and retailers.

4. Specialisation:

Wholesaler deals in specific goods.

5. Requirement of Capital:

In wholesale trade, the capital requirement is heavy.

6. Display of Shop:

He does not display his goods.

7. Credit Facilities:

Wholesaler provides credit facilities as he does his business on credit mostly.

8. Selection of Place:

Wholesaler needs not to have his shop in the heart of the city. He can have his godowns in a corner of the city and can supply orders therefrom.

9. Direct Dealing:

In wholesale trade, there is no direct dealing with the consumers.

10. Pricing:

Wholesale price is generally lower.

Retailer

1. Purchase and Sale:

Retailer purchases goods from the wholesalers and sells to the ultimate consumers.

2. Quantity:

Retailer purchases goods in small quantities.

3. Link:

Retailer is the last link in the chain of distribution of goods.

4. Specialisation:

Retailer deals in a variety of goods.

5. Requirement of Capital:

In retail trade, the capital requirement is less.

6. Display of Shop:

Retailer emphasizes on display to attract the customers.

7. Credit Facilities:

He sells goods in cash mostly and therefore credit facilities are limited.

8. Selection of Place:

Retailer needs to have his shop in the heart of the city to attract a large number of customers.

9. Direct Dealing:

In retail trade, retailers deal directly with the ultimate consumers.

10. Pricing:

Retail price is mostly higher.

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