Differentiate between a wholesaler and a retailer.

Wholesaler: Wholesaler is any individual or a firm that sells goods in large quantities to the buyers who are not the ultimate consumers. They are the producers who sell their products directly to the retailers. Wholesalers provide goods like forest products, minerals, agricultural products. It is he who solves the problems of producers and small retail traders. To fulfill the need of the small retailers in his area, he can place a large order with the producer.

Due to the specialized knowledge and skill of the wholesalers, the goods can be distributed efficiently and effectively. He performs various functions such as price fixation, risk bearing, distributing goods, transporting goods, grading, packaging, arranging storage, assembling products etc. Wholesalers provide valuable services to both manufacturers and retailers.

Retailer: A retailer is any individual whose business consists of sale of goods to the consumers to fulfill their needs but not for resale in business. It means all the activities that involve sale of goods to the ultimate consumers for their personal consumption. Retail store is a shop or business unit engaged in retail selling. They act as the final link in the distribution channel. Because of these retailers, people living in distant villages, cities and towns get the goods easily and conveniently. They perform various functions like estimating the demand, transportation, storage, grading, packaging, selling, risk bearing etc. Hawkers, paddlers, market traders and pavement traders are also known as retailers.

Tags: B.Com

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