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Wholesaler vs Retailer

There are several things to consider before starting a business. Make sure you’ve already set the role that you want to be in. A wholesaler or a retailer? Check out the differences between wholesale and retail, which can help you determine a business according to your needs and business goals. 

Number of Items Sold

Retailers sell products individually (per pcs), while wholesalers sell products in large quantities (per dozen/carton).

Buying Party

One of the main differences between wholesaler and retail is who buys their products. On the wholesaler scale, the seller distributes goods to smaller stores or retailers, whereas retail businesses sell goods directly to final-level consumers for immediate consumption. Wholesale is also known as a B2B company (Business to Business), and retail is better known as a B2C (Business to Consumer). 

Product Inventory 

Retailers store fewer products in their inventory, while wholesalers have more products because they will continue the distribution process to several parties.

Product Prices 

Wholesalers sell goods in large quantities at lower prices to retailers. On the other hand, retailers sell goods at a higher price to the final consumer because they take the sales margin.

Sales Method

Retail and wholesale are also different in sales methods. Customers visit retailers to buy their products. On the other hand, wholesalers can apply both ways, sell their products from store-to-store through salesman/canvasser or visited by retailers.

Read More: What is an Effective Call? How to Improve It?

Product Display

Product store display is part of a marketing strategy to attract customers. Since retailers sell their products to end customers, they put more effort into product store display, while wholesalers will prioritize price and product selection. 

Know more about Store Planogram – Importance and Why You Should Digitize the Compliance Monitoring

Those are some of the differences between wholesale and retail that you can consider. Make sure to always prioritize good distribution in every business you run.

Monitor your product movements with Advotics  your supply chain management solution. Click here to find out more about Advotics’ products and advantages.

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