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Distinguish between Wholesale Trade and Retail Trade.


The following are the points of distinction between wholesale trade and retail trade :

1. Sale of operations : Wholesale trade is carried on a large scale. Hence, the amount of capital invested in wholesale trade is much higher than that in a retail trade.

2. Range of products : A wholesaler specializes in one type of commodity while a retailer has to keep a large variety of products to satisfy the varied requirements of the customers.

3. Link : A wholesaler is a link between producer/manufacturer and retailer while a retailer acts as a intermediary between the wholesaler and the ultimate consumer.

4. Location : A wholesaler need not have a showroom or shop in central place. He may has his godown in a corner of the city and may operate from his house or a small shop in the market where he may accept order and supply goods to the various retialers. While retailer generally has a shop or showroom in the heart of the city so that he can attract large number of customers.

5. Margin : The margin in case of a wholesaler is smaller as compared to a retailer since the former has high turnover as compared to the later.

6. Decoration : The wholesaler does not require any decoration of his shop or display of goods while incase of a retailers, decoration of shop, is must.

7. Quantity : In wholesale trade, buying and selling of goods is in large quantity while in ret6.ail trade it is comparatively in small lots.

8. Credit sales : The credit sale is a common feature in wholesale trade as compared to retail trade.

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