What is Wholesale?
A 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 a 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 in cheaper rates and sell it 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.
|Meaning||Sale of goods in bulk but cheaper rates||Sale of goods to the end users in higher rates and limited quantity|
|Creates a link between||Manufacturer and retailer||Wholesaler and customer|
|Size of business||Large||Small|
|Business outreach||Spread across the state, different state||Limited space|
|Art of selling||Not required||Required|
|Promotion||Not required||It is important|
|Attractive display to good||Doesn’t matter||It is required to attract the customers|
The above mentioned is the concept, that is elucidated in detail about ‘Wholesale vs Retail’ for the Commerce students. To know more, stay tuned to BYJU’S.