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:
ADVERTISEMENTS:
Wholesaler purchases goods in large quantities.
3. Link:
Wholesaler is the link between producers and retailers.
4. Specialisation:
ADVERTISEMENTS:
Wholesaler deals in specific goods.
5. Requirement of Capital:
In wholesale trade, the capital requirement is heavy.
6. Display of Shop:
ADVERTISEMENTS:
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:
ADVERTISEMENTS:
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:
ADVERTISEMENTS:
Wholesale price is generally lower.
Retailer
1. Purchase and Sale:
Retailer purchases goods from the wholesalers and sells to the ultimate consumers.
2. Quantity:
ADVERTISEMENTS:
Retailer purchases goods in small quantities.
3. Link:
Retailer is the last link in the chain of distribution of goods.
4. Specialisation:
ADVERTISEMENTS:
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:
ADVERTISEMENTS:
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:
ADVERTISEMENTS:
Retail price is mostly higher.
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