Difference Between Wholesale and Retail

Main Difference

After the manufacturing of the products, the next part came in is the supply or distribution of products to the markets. As we know that supply chain comprises of several mediators which are responsible for the product outreach to the market. Whenever we came across the supply chain business, we often hear two words or two mediators involved in it; called wholesale or retail. A layperson might perplex between both the terms, but the business student is well aware of the differences between both these actions and terms. The wholesale business has a direct affiliation with the company as it purchases the products in bulk quantity, in reverse they wholesalers are offered the best possible rates. The person doing the wholesale business is known as the wholesalers; he works as the mediator in between the company and the retailer. On the other hand, retail is the business in the supply chain which gets product from the wholesalers and sells it to the customer in the market. The person working in the retail business is known as the retailer; he purchases products in small lots and works as a mediator in between the wholesale and the customer.

Comparison Chart

WholesaleRetail
MediatorThe wholesale works as the mediator in between the company and the retail.The retailer works as the mediator in between the wholesale and the customer.
PersonThe person doing the wholesale business is known as the wholesaler.The person doing the reatil business is known as the retailer.
OperationsLimited to specefic area.Extended to various cities.
CapitalRequires more capital.Requires less capital.
Selling & Advertisement SkillsNot required.The retailer has to be more familiar with the selling and advertisement tactics.

What is Wholesale?

Wholesale is the business in the supply chain of the products. After the product gets manufactured before reaching to the market, or open to sale for the common consumer and customer, it is up with the wholesalers. In other words we can say that wholesaler works as the mediator in between the company and the retailer. The wholesaler has a hefty amount of capital and has a direct affiliation with the companies. The wholesaler gets a bulk order from the companies for a lower price, and then sell it to the retailer by keeping his profit. The wholesaler mostly deals in the limited products. The wholesaler sells the products to the retailer after keeping his profit. In some cases, the wholesaler gives products on credit to the retailer, if he has good business repute. The wholesale business doesn’t need to advertise for the product or needs the selling skills; the all they need is to invest heavily so that they can have access to the different products from the companies at the best rate possible.

What is Retail?

The retail is the final destination in the supply chain business, from where a common consumer or customer can get hands on the products. The person doing the retail business is called the retailer; he works as the mediator in between the wholesaler and the customer. The retailer has a wide array of products from different companies, depending on the customer’s demand. Although, the retailer requires less capital than the wholesaler for the business. Other than this, the retailer has to be more familiar with the selling and advertisement tactics. The retailer purchases products from the wholesaler, and then further sells it to the customer after keeping his profit. The operations of the retailer are limited to the specific area.

Wholesale vs. Retail

  • The wholesale works as the mediator in between the company and the retail. On the other hand, the retailer works as the mediator in between the wholesale and the customer.
  • The person doing the wholesale business is known as the wholesaler, whereas the person working in the retail business is known as the retailer.
  • The operations of the retailer are limited to the specific area. Contrary to this, operations of wholesalers are extended to various cities.
  • The retailer requires less capital than the wholesaler for the business.
  • The retailer has to be more familiar with the selling and advertisement tactics, whereas wholesaler doesn’t need these skills.

Comparison Video

YouTube video