What Is the Difference Between a Wholesaler and a Retailer?
Wholesale means “selling in large quantities” while retail means “selling in small quantities.” Therefore, wholesalers sell in bulk and retailers sell in individual or smaller quantities. Most often, wholesalers do not sell directly to individual customers, but rather sell goods directly to retailers who are then able to sell to individual customers.
The wholesaler will always be able to offer a lower price than the retailer because the wholesaler has a relationship with the manufacturer and buys products or goods directly from the manufacturer. This makes it possible for the manufacturer to sell goods at a much lower price.
A retailer must sell the goods or products at a higher price because the retailer lacks the direct link and connection with the manufacturer that the wholesaler has. The retailer must also concern themselves with details, such as the salaries of employees, rents of shops, sales tax and advertising of the goods or products sold in the retail store. A retailer is able to choose a better-quality product; however, than the wholesaler as the retailer is able to discard damaged products and only keep quality products. This is because the retailer buys in such small quantities that the retailer can keep track of the quality of each product and can choose the products that the retailer wants. The wholesaler must accept the products or goods in bulk and, therefore, cannot ensure the highest quality.