what is the similarity between wholesale trade and retail trade
Answers
Explanation:
In the supply chain industry, wholesale and retail are two major components of the distribution process. When a company manufactures any products it is first sold in bulk quantity to the wholesaler, who then sells it to the retailer and further the retailer sells it to the ultimate customers. In simple words, a wholesaler buys the product in bulk from the manufacturer and sell it to the retailer, who then sells it to the end-users.
Wholesaler’s main aim is to sell goods to businesses or retailers and they sell it further. On the other hand, a retailer targets the audience is the final consumer and only sell goods only to them.
These two business links are important mediators of the marketing channel. If any of these links are absent, the entire supply chain will get disrupted. In this article, we will explain the significant differences between wholesale and retail.
Also Read: Difference between Wholesaler and Distributor
Wholesale vs Retail:
Wholesale is selling of goods in bulk to the retailers and businesses at cheaper rates. The wholesaler buys the products in bulk, breaks it into small parts, repacked, and sells it to the retailers. The wholesaler sells only specific items and is least interested in the location of the shop, packaging, and display of the goods. They are more interested in the quantity not the quality of a product.
For wholesale business, considerable investment is required, and not the promotion and advertisement. The customers of the wholesale are spread in various cities, town, and different states. Most of the purchases are sold through credit to the customers.
A wholesale shop should have a license to sell the goods only to the retailer and usually not available to the customer. However, if the customer wants to buy a product from the wholesaler directly them they will be charged higher as compared to the retailer. Usually, a wholesaler sells only one product or a category of products, so that they can focus on one kind of business for their goods.
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Answer:
Retail involves the sale of goods or services directly to the end-user. Retail sales can involve a variety of products and can occur through numerous distribution channels.
Wholesalers are those who sell products to businesses or other outlets who are not the end-user. Wholesalers don’t sell small quantities of goods like retailers. Instead, they sell products in bulk at a low price. The more you buy from a wholesaler, the less per-product you’ll end up having to pay.