Differences in functions between a wholesaler and retailer

PICKFORD

Verified member
The wholesaler and the retailer are channels in which good commodities and services I have been passed on to customers, clients, consumers which is the final destination. But yet there are differences in functions between the wholesaler and retailer in the distribution of commodities goods and services. a wholesaler buys goods in large quantity from the manufacturer and sells in small quantities to the retailer but the retailer buys in smaller quantities from the wholesaler and sell in bits to the final consumers. The wholesaler himself requires a large space or warehouse to store his or her goods but the retailer requires a small space in other words a shop to display his wares, the wholesaler acts as an intermediary between the retailer and the manufacturer but the retailer acts as an intermediary between the wholesaler and the final consumers, the wholesalers stocks limited variety of goods in his Warehouse but on the other hand a retailer stocks several variety of goods in a shop making it possible for consumers to make choices, it is the function of the wholesaler to provide useful information about a particular goods to the manufacturer why it is the duty or function of the retailer to provide useful information to the wholesaler concerning market situations of his products, the wholesaler spends more money to acquire a particular product but the retailer spends lesser amount on a variety of products, finally the wholesaler may travel long distances to buy goods from the manufacturer while the retailer mostly by his goods from the wholesaler with in his vicinity neighborhood.
 
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Deleted member 28127

Guest
A wholesaler could be a detailer at the same time means he could merge between the two business in the same time but the opposite couldn't have happened means a detailer cannot be a wholesaler.
 

sincerem

VIP Contributor
Any one who studied business management in the high school or tertiary institution will come to understand that, the wholesalers deals in large quantities from the vendors/producers of the products. Sales to the retailers and the retailers sales to the final consumers. The wholesale can still have a retailer shop depending the seize or population of people in that geographical location. If you're selling in the urban areas, then it is believing, you'll get more of the customers who deals in wholesale purchase, and resell the products as retailers to final consumers, that's simply the chain of business starting from the producers to the consumers.
 

Mataracy

VIP Contributor
Wholesale is the one that in between the retailers and the company.
Wholesale will collect goods from the company and also sale in bulk to the retailers who will then sale to the consumers.

The retailers is the one in between the wholesalers and the consumers.
Retailers always sale in pieces yo the consumer so that they will be able to afford to buy it.
 

Kingsley

Valued Contributor
Business is all about trade and trade isI first buying and then selling. At one time the seller becomes the buyer and the buyer becomes sellers , so we can see that trade in highly interwoven. And for trade to be very effective and efficiency there are some aids that are very important, for instance we have, banking , insurance, communication, warehousing, transportation and the likes. Without all those auxiliaries trade would be highly ineffective. Now there are some physical actors that makes trade to take place, if this actor's are missing it will be difficult or impossfor it to take place these are the wholesaler and retailer, they are also called the middleman in the channel or chain of distribution. The wholesaler are those people who acquire goods or services from the manufacturer or producer in a very large quantity and resell to the retailers in a small quantity, sometimes they also give the retailer goods on credit to pay at a later date,

The retailer on the other hand buys goods from the wholesaler in small quantities and resell at a smaller unit to the final consumer. Sometimes they give credit facilities to the final consumers and even discounts.
 

btaliat

VIP Contributor
In the chain of distribution, the wholesalers helps a lot in making sure that the products are in circulation. They buy in bulk from the manufacturer and make sure they sell in units to the retailer.

Not only that, most wholesalers serve as middlemen between the manufacturer and the retailer. They do report how the retailers feel to the manufacturer and vice versa. They do provide the retailers with relevant information concerning the products as well.

These days however, the roles of the wholesalers have nearly oberhsadowed that of the retailers as we now have the consumers bypassing the retailers to get products from the manufacturers. This may be frowned at but it is trending these days.

Retailers on the other hand deals directly with the consumers. They sell in unit to the consumers and most time they sell on credit and provide house to house service.
 

Sotherefore

VIP Contributor
Both of them has a very important part to play in the supplying chain in the economic sector of a country , normally a producer which is the manufacturer of a particular product is the one who produces a product or a raw materials...


At the same time the producer will sell this product to a wholesaler , here a wholesaler will play an important part of buying these product directly from the manufacturers.

Sometimes a wholesaler can also by the determinants of the price of a particular product because if they increased the price they are selling to the retailers it will obviously affect the end users which is the masses.

A retailer in the other hand is someone who is interested to buy this product in smaller quantities than the wholesalers to retail it to the end users which is the consumers , here also a retailer also have the power to increase the price of a particular product but because of the High competition in the retailing chain the price of a particular product is held constant.

The price of a particular product can be increased when the economic situation of the country is depreciating which may not likely be cause by the wholesalers and retailers.
 

Suba

Moderator
Staff member
Interesting threads, Wholesale and Retail are components in the distribution of an item. Wholesalers are wholesalers, then wholesalers will sell goods to retailers at lower prices, retailers are wholesale customers scattered in various places. Wholesalers usually also charge different prices for retailers and consumers.
 

Setho

VIP Contributor
The stages of production up to the target consumer is usually a long series of processes and in that cycle there is usually exchange of products for money in a lot of hands before it usually gets to the target consumer . Ordinarily the people who are producing the goods in itself are usually the producers or the manufacturing company . They are then going to give it up to the wholesalers who are then going to sell it in bits to the retailers and then they are going to sell it off to the final consumers.

The both of them are very important to the supply chain and wholesalers are usually more concerned with the buying of products in bulk and then selling it in packets . For example somebody might decide to buy one carton of books and then sell it off to retailers in dozens.

The retailer's on the other hand I'm more concerned about selling it or directly to the final consumers even though wholesalers might also do the same. Whenever somebody buys one dozing of book from the wholesalers and then goes to sell it one by one to the final consumer he can be regarded as a retailer .
 
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eldavis

Guest
I think the major difference is that the retailers are closer to the final consumers, which are the costumers. The wholesalers usually buy directly from the manufacturing company in most cases then in turn sell to retailers.
 

blessingc

Active member
We were taught in schools the chains of distribution and we know their functions, they function differently. The wholesalers has always been the middle men between the manufacturers and the retailers. The wholesalers buy bulk goods from manufacturers or distributors sell them to retailers in smaller quantities.
Retailers buy smaller amounts of bulk goods from wholesalers or distributors. Then they sell them directly to the consumers.

There are alot of differences between the wholesalers and the retailers.

The wholesalers deal with limited types of products unlike retailers who sells varieties to meet the needs of the consumers. For example there can be a delivery person or a vehicle who delivers bread of a particular company as a middleman between the manufacturers to the retailers so, they can sell to the consumers and this middleman sells just the bread if that company to different retailers while the retailers buy bread from more than two companies just to give their customers a variety of breads to choose from.


Another difference is wholesalers need alot of capital to start up their business while the retailers can use limited capital to start up a small business.
While the retailers deal directly with consumers the wholesalers do not.
 
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