Top 10 Differences between Wholesalers and Retailers

Top 10 Differences between Wholesalers and Retailers

The following are some of the differences between Wholesalers and Retailers.

Wholesalers vs Retailers
Wholesalers vs Retailers
Wholesalers Retailers
1. Wholesalers buy from the manufactures and sell goods to the retailers. Retailers buy from the wholesalers and sell goods to the consumers.
2. Wholesalers usually sell on credit to the retailers. Retailers usually sell for cash.
3. They specialise in a particular product. They deal in different kinds of goods.
4. They buy in bulk quantities from the manufacturers and sell in small quantities to the retailers. They buy in small quantities from the wholesalers and sell in smaller quantities to the ultimate consumers.
5. Wholesalers always deliver goods at the doorstep of the retailers. Retailers usually sell at their shops. They provide door delivery only at the request of the consumers.
6. A wholesaler needs mainly a godown to stock the goods he handles. A retailer needs a shop or a showroom to sell.
7. A wholesaler goes to different places to supply. A retailer usually sells at a particular place. Sometime he may have branches in other places.
8. A wholesaler need not provide shopping comforts like luxurious, interiors, provision of air-condition, trolleys, etc. A retailer usually provides shopping comforts mainly to attract customers.
9. As the wholesaler specialises in a particular pmduct, he has to necessarily convince the retailers about the product quality. Only then the latter will place an order. As the retailer deals in a variety of goods, he need not influence buyers. He can let the buyer choose any brand of product the he likes.
10. As per the custom of their trade, wholesalers allow the retailers trade discount each time the retailers buy. The retailers normally do not allow any discount to their customers. Some of them may offer cash discount to bulk buyers. Sometimes, they may offer seasonal discounts.
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