Difference between Wholesaler and Retailer

Wholesaler and retailers both deal in products of a company and helps a corporation in selling the product to end users. However there are any differences between wholesaler and retailer, let’s look at some of them –

  1. Wholesalers buy products from distributors or manufactures and sells it to retailer while retailer buy products from wholesalers and sells it to the customer.
  2. Wholesalers keep huge stocks because many vendors buy from them whereas vendors do not have keep that much stock of goods.
  3. Since wholesalers buys in bulk quantities they get some discount which is the not the case with retailers and that is the reason why they earn less profit margin.
  4. Wholesalers require huge amount of capital because lot of their cash is tied with unused stock whereas retail outlet requires less amount of capital.
  5. While wholesaler has to deal only with few retailers and that is why there is less stress whereas retailers have to deal with many customers and also they have to provide them various facilities like home delivery of good, after sales service and so on.
  6. Wholesaler need to be present in the heart of city or central business place of the city whereas retailer can be anywhere in the city or even at village area.
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