Tuesday, November 6, 2018

Difference Between Wholesalers And Retailers

Difference Between Wholesalers And Retailers
The main differences between wholesalers and retailers can be pointed out as follows:
1. Meaning
Wholesalers: Businessmen who buy large quantity of products from producers or distributors and sell to retailers.
Retailers: Businessmen who buy different varieties of goods from wholesalers and sell to ultimate consumers.

2. Product Line

Wholesalers: They deal in certain product line only
Retailers: They deal in different varieties of products

3. Investment Required

Wholesalers: Huge amount of investment required
Retailers: Lesser amount of investment than wholesalers required

4. Purchase Volume

Wholesalers: They purchase in large volume directly from producers or distributors
Retailers: They purchase in smaller quantity from wholesalers

5. Decoration

Wholesalers: They do not need decoration and display
Retailers: Attractive decoration and proper display of goods is required

6. Location

Wholesalers: Located in different cities, towns and villages
Retailers: Located at a particular place or area

7. Scope

Wholesalers: Wider scope
Retailers: Limited scope

8. Profit Margin

Wholesalers: Less profit margin
Retailers: More margin than wholesalers

9. Competition

Wholesalers: Wholesalers have to face less competition in the market
Retailers: They face tough competition

10. Selling Skill

Wholesalers: They do not require art of selling to attract the customers
Retailers: They require art or skill of selling

11. Advertisement

Wholesalers: Not Required
Retailers: Required

12. Credit Facility

Wholesalers: They provide credit facility to retailers
Retailers: They sell on cash basis

     
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13. Link

Wholesalers: No link with the ultimate consumers
Retailers: Direct link with the customers

14. Economies Of Buying

Wholesalers: They enjoy the benefit of large scale buying
Retailers: No benefit of bulk buying

Wholesalers Vs Retailers (Comparison Chart)

Basis For Difference

Wholesalers
Retailers
Introduction

Traders who buy products from producers and sell to retailers
Traders who buy products from wholesalers and sell to the final customers
Product Line

Limited
Different varieties
Investment

Huge
Less
Purchase Quantity

Large
Small
Decoration

Not Required
Required
Location

Different locations
Specific area
Scope

Wider
Limited
Profit Margin

Less
More
Competition

Less
High
Selling Skill

Not required
Required
Advertisement

Not required
Required
Credit Facility

Yes, they provide
No
Link With Customers

No
Yes
Economies Of Buying

Yes
 No
This post helps to understand the difference between wholesalers and retailers and to make comparison between them.