Differences Between Wholesaler And Retailer

Both wholesaler and retailer are the members of distribution channel. But there are certain difference between them. They can be compared according to the transaction volume, specialization, scope, nature of selling etc.

Differences between wholesalers and retailers are as follows:

1. Volume of transaction

Wholesalers purchase and sell goods in large quantity. But retailers purchase goods in large quantity and sell in small quantity to actual consumers.

2. Purchase and sale

Wholesalers purchase goods from producers and sell to retailers. Retailers purchase goods from wholesalers or sometimes from producers and sell them to final consumers. The goods sold by retailers are not re-sold.

                                     Also Read: Meaning And Features Of Wholesaling

3. Specialization

Generally, wholesalers deal in special products. But retailers deal in different goods of different nature, types and quality.

4. Scope

Scope of wholesaling is wide, it remains expended in different cities and villages. Scope of retailing is limited, it remains in local area.

5. Knowledge of salesmanship

Wholesalers needs financial capacity, but need not to be knowledgeable and salesmanship in selling goods. A retailer needs to be an effective seller, should be knowledgeable in selling

6. Nature of selling

Wholesalers sell goods to retailers, generally, on credit, and retailer makes payment after selling goods to final consumers. Retailer sells goods to final consumers on hand cash, even if sold on credit, it is only for shorter time.

7. Importance of place

For wholesaling, place is not so important, it also does not need to display of goods or decoration of shop to attract customers. But for retailing location of shop is very important, a retailer should be clever, consider and pay much attention to display and decorate shop to attract customers.


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