Distinction Between Wholesaler and Retailer
wholesaler serves as a link between producers and retailers. On the
other hand, a retailer provides a link between wholesalers and consumers.
Wholesaler is the first link, whereas retailer is the last link in the chain of
distribution of goods.
of Operations: A wholesaler carries on business on a
large scale and requires huge capital. A retailer, on the other hand, deals
generally on a small scale and capital invested in retail trade is relatively
3. Range of Goods: A wholesaler generally deals in one commodity. But a retailer deals in a large variety goods and caters to the diverse needs of his end customers.
wholesaler generally sells goods to retailers on credit. But a retailer usually
sells goods to end consumers on cash basis.
of Selling: A wholesaler sells goods for resale. On the other hand, a
retailer sells goods for ultimate consumption or use.
of Supply: A wholesaler buys goods from manufacturers and
their agents in large quantities. On the other
hand, a retailer generally buys goods from wholesalers and their agents
in small quantities.
wholesaler operates his business in big commercial cities and expand his
business to different areas. A retailer operates in a smallest village and also
big cities and locates his business in particular place of area.
Concludingly channels of distribution
facilitate transfer of goods and services. It enables free flow of goods and
services from the producer to consumers.