Distinguish Between a Wholesaler and Retailer.
Wholesaler denotes a type of middlemen between the producers and retailers. They generally sell goods and commodities to the retailers, industrial consumers and professional users. There are two types of wholesaler like manufacturer agents and merchant wholesalers. The manufacturer and selling them in small quantities to the retailers who serve the ultimate consumers.
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Retailer denotes the last linkage in the channel of distribution between the producers and the consumers. The establishment engaged in selling goods for personal consumption is known as retail trade. The retailers have close contact with the customers/consumers because they attend them personally. Retailing establishment is an old age business and are found in every areas of the country
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The following difference between wholesalers and retailers can be drawn:
Wholesalers
- It is the first link in the chain of distribution which links between manufactures and retailers.
- The wholesaler trade is conducted in bulk quantities.
- Most of the transactions are effected on the basis of credit.
- The capital requirement of this business is heavy.
- This type of trade deals in specific goods.
- It does not emphasize on proper display of goods.
- It does not experience direct dealing with consumers.
- It avails the economics of bulk purchasing.
- They operate in big cities and towns.
- It does not give emphasis on home delivery facility.
- It does not provide facility.
- It does not provide after sale service.
Retailers
- It is the last link in the chain of distribution which links wholesalers and consumers.
- It is conducted in small quantities.
- Most of the transactions take place on cash basis.
- This type of business usually require less capital.
- This type of trade deals in variety of goods.
- It gives a lot of emphasis on proper display and advertisement.
- It always deals directly with the ultimate consumers.
- It does not avail such economies because it does not incur bulk purchase of goods.
- They operate in small villages and in big cities.
- It gives much emphasis on home delivery facility.
- It provides after sale service to the consumers.