What is retail and wholesale?
Understanding Retail and Wholesale
Retail
Retail refers to the sale of goods or services directly to the end consumer, typically in small quantities. Retailers purchase products from wholesalers or manufacturers and sell them individually or in small lots to customers for personal use. Retail sales occur through various channels such as physical stores, online platforms, or catalogues.
- Example: Supermarkets, clothing stores, and online shops like Amazon.
Wholesale
Wholesale involves the sale of goods in large quantities to retailers, other businesses, or professional users rather than to end consumers. Wholesalers typically act as intermediaries between manufacturers and retailers, providing products in bulk at lower prices per unit.
- Example: Distributors who supply groceries to supermarkets, or companies like Costco (which also sells to individuals in bulk).
Key Differences
- Wholesale sells in bulk, retail sells in small quantities.
- Wholesale customers are usually businesses, retail customers are individuals.
- Wholesalers often offer lower unit prices than retailers.