What is the difference between wholesale and retail?

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Wholesale and retail trade have existed side by side for many years. They are inextricably linked, although they have many significant differences. To better understand these types of trade, it is worth taking a closer look at their specifics, as well as the features of each of them.

Wholesale trade and its features
Wholesale trade is the sale of goods in large quantities. In this case, they are purchased not for personal use, but for business, for example, for subsequent resale. That is, the seller in this case is the manufacturer (supplier), and the buyer is an intermediary who will subsequently sell the products for his own benefit.

Wholesale trade and its features

Among the main functions of wholesale trade are:

Interaction with various trade participants, both at the national and international levels.
Monitoring market trends.
Participation in the development of newecuador email list products, expansion of product range, and modernization of goods.
Acceptance of possible risks associated with lack of demand for products.
Organization of proper storage of large quantities of goods.
Ensuring delivery of products to the intermediary (unless otherwise provided by the contract).
Specifics of retail trade
As a rule, retail trade is a consequence of wholesale. That is, goods are bought wholesale from the manufacturer (supplier) and sold retail to the end consumer, who will use it for personal purposes. Therefore, the buyer, as a rule, is a private person.

Retail trade has its own functions, some of which are similar to wholesale:

Monitoring and analyzing market trends, including determining the level of demand and comparing it with the number of offers.
Pricing takes into account all factors that influence the final cost of the product, such as delivery, storage, advertising.
Search for the most advantageous offers for products that are in demand.
Formation of a product range sufficient to satisfy the needs of the end consumer.
Customer service.
Maintenance of premises for storage and sale of goods (e.g. warehouse, store).
Specifics of retail trade

Wholesale and Retail Trade: Key Differences
Both of these types of trade are aimed at selling goods. At the same time, from all of the above, we can conclude that the main difference between wholesale and retail trade is the further use of the goods purchased from the supplier: business goals or personal motives. Wholesale sales are most often aimed at satisfying the needs of legal entities and individual entrepreneurs, and retail sales are aimed at satisfying the needs of individuals.

The difference is also noticeable in the volumes of purchases: in retail they are small, most often within one or several units of goods, while wholesale trade involves purchasing large quantities. The cost of products also differs: in retail sales it is higher than in wholesale.