Difference between Wholesale And Retail

Manufacturers produce goods and services and customers/consumers buy goods and services for the fulfillment of their needs. But how do goods reach manufacturers to customers? There are people like wholesalers and retailers who perform different activities to make goods available to customers, the activities are known as Wholesale and Retail. Wholesale is a series of activities that includes buying goods in large quantities from manufacturers and selling them further to retailers. Retail stands for the activity of buying goods in bulk from wholesalers and selling them to customers in very small quantities.

What is Wholesale?

Wholesale is a series of activities that includes buying goods in large quantities from manufacturers and selling them further to retailers. In simple terms, wholesale is buying goods in bulk and selling them to retailers in small quantities. The people performing wholesaling are known as Wholesalers. Wholesalers tend to sell goods to retailers at discounted prices but still manage to make enough profits because their selling price is more than the original selling price.

Key Takeaways from Wholesale:

• It involves buying goods in large quantities from manufacturers and selling them to retailers in bulk but in small quantities.
• The wholesaler acts as a mediator between manufacturers and retailers.
• For the activity of wholesaling, huge capital is required in order to store the goods.

What is Retail?

Retail stands for the activity of buying goods in bulk from wholesalers and selling them to customers in very small quantities. The people doing the retail activities are known as Retailers. The volume of transactions done in retail activity is comparatively small. The capital requirement in retail activity is smaller as compared to wholesaling.

Key Takeaways from Retail:

• It involves buying goods in bulk but in small quantities from wholesalers and selling them to customers in small quantities.
• Retailers act as a mediator between wholesalers and customers.
• For the activity of retailing, huge capital is not required.

Difference between Wholesale and Retail

Basis	Wholesale	Retail
Meaning	Wholesale is a series of activities that includes buying goods in large quantities from manufacturers and selling them further to retailers.	Retail stands for the activity of buying goods in bulk from wholesalers and selling them to customers in very small quantities.
Mediator	Wholesalers act as a mediator between manufacturers and retailers.	Retailers act as a mediator between wholesalers and customers.
Volume of Transactions	In wholesaling, the volume of transactions is large.	In retailing, the volume of transactions is small.
Capital Requirement	Capital requirement in wholesaling is high.	Capital requirement in retailing is small.
Art of Selling	Art of selling is not required in wholesaling.	Art of selling is required in retailing.
Need for Advertisement	There is no need for advertisement.	There is a need to advertise products to attract customers.
Dealing Area	Wholesalers deal in limited products.	Retailers deal in a variety of products.
Competition	Competition is low in wholesale.	Competition is high in retail.
Price	Price of goods is low.	Price of goods is comparatively high.
Area of Operation	Wholesale activity/wholesalers are extended to various cities.	Retail activity/retailers are limited to a specific area.