What is the difference between wholesale trade and retail trade ? Are the shops in our neighbourhood constitute retail trade or wholesale trade ?

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Dear Student

S.No Basis of Difference Wholesale Trade Retail Trade

1 Meaning In wholesale trade, goods are sold in large quantities to retailers or other business. In retail trade, goods are sold to final consumer in small quantities.

2 Price of product Price of product is low. Price of product is high.

3 Volume of Transaction Volume of transaction is large in wholesale trade. Volume of transaction is small in retail trade.

4 Investment It requires huge investment. It requires small investment.

5 Area of operation In wholesale trade, area of operation is extended to various cities. It has limited area of operation.

6 Competition There is less competition. There is huge competition.

Shops in our neighbourhood area are engaged in retail trade. Wholesalers generally have there shops or godowns in market area.

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S.No	Basis of Difference	Wholesale Trade	Retail Trade
1	Meaning	In wholesale trade, goods are sold in large quantities to retailers or other business.	In retail trade, goods are sold to final consumer in small quantities.
2	Price of product	Price of product is low.	Price of product is high.
3	Volume of Transaction	Volume of transaction is large in wholesale trade.	Volume of transaction is small in retail trade.
4	Investment	It requires huge investment.	It requires small investment.
5	Area of operation	In wholesale trade, area of operation is extended to various cities.	It has limited area of operation.
6	Competition	There is less competition.	There is huge competition.