Differentiate between wholesale and retail
Key Differences between Wholesale and Retail
The points given below elaborates the fundamental differences between wholesale and retail trade:
1. Wholesale means the sale of goods in voluminous quantity, at a low price. The business of selling goods to end consumers in small lots at a profit is known as Retail.
2.Wholesale creates a link between the manufacturer and retailer whereas Retail creates a link between wholesaler and customer.
3. There are wide differences between wholesale and retail price of a particular commodity, i.e. the wholesale price is always less than the retail one.
4. In wholesale business, there is no requirement of an art of selling the goods which are a must in case of retail business.
5. The size of a wholesale business is larger than a retail business.
6. In the retail business, the retail shopkeeper can choose the goods freely which is not possible in wholesale business because the goods are to be purchased in bulk.
7. In wholesale business, the capital requirement is higher than in retail business.
8.The location is of utmost important in retail, but in wholesale, the location does not matter at all.
9. While selling the goods in retail the appearance of the shop and the display of items should be good to attract more and more customers. However, in wholesale, there is no such kind of need.
10. There is no requirement of advertising in wholesale but retail business requires advertising to grab the attention of customers.
