By virtue of this, the retail business person always goes with the quality products. Moreover, the goodwill of the retailer depends on these parameters. In this way, shop location, the appearance of the shop, goods displayed, quality of products and service provided is given much importance because it leaves an impact on the customer’s mind. Moreover, they include other expenses in the price of goods on a proportionate basis, like the rent of premises, salary to the workers, electricity expenses, etc.ĭue to extreme competition, it is quite difficult to retain customers for a long time, so the retailer should know the techniques of handling different kinds of customers. The first and foremost reason behind this is the advertisement cost, and the profit margin is high. The prices of goods purchased in retail are relatively high. They purchase goods from wholesalers in bulk and sells it to the ultimate consumer in small lots. Retailers are the middleman between wholesalers and customers. When the goods are sold to the final customer, for consumption and not for the purpose of resale, in small quantities, then this business type is known as Retail. Retail means selling goods in small lots. The price of purchased on wholesale is lower as it consists of less profit margin. Most goods are sold on credit to the customers of the wholesale business. However, the customers of a wholesale business are spread in various cities, towns or even in different states. It does not require any publicity or advertisement. For starting a wholesale business, there is a huge capital requirement as the business size is large. In wholesale business, the wholesaler gives more emphasis on the quantity of goods, not on the quality. These things do not matter to them at all. Wholesalers do not pay much attention to the location of the shop and its appearance, and display of goods because they sell only a specific type of items, and their customers are generally retailers or other businesses who purchase the goods for the purpose of resale. Finally, they are repacked and resold to the other parties. It is a type of business in which goods are being purchased from the producers by the wholesaler in big lots, and then the bulk is split into comparatively smaller lots. Wholesale refers to the selling of goods to the customers like retailers, industries, and others in bulk, at a low price. When the goods are sold to the final consumer in small lots, then this type of business is termed as retail. Wholesale is a business in which goods are sold in large quantities to the retailers, industries and other businesses. Today, we are going to describe the significant differences between wholesale and retail.
In the absence of these two links, the whole chain will get disturbed. In this way, these two business forms are one of the important intermediaries of the marketing channel.
On the other hand, a retailer targets final consumer and sells goods to them.
While a wholesaler sells goods to the businesses, as they purchase goods to sell it further.