The primary difference between wholesale and retail lies in the type of buyer and the sales process:

• Wholesale involves selling products in bulk to other businesses, such as retail stores, at discounted prices. Wholesalers buy large quantities from manufacturers or distributors at low prices and resell them in smaller quantities to retailers for a profit. This is a business-to-business (B2B) model. Wholesalers typically operate from large warehouses and focus less on customer experience since they do not sell directly to the end consumer

• Retail involves selling products directly to the end consumer, usually in smaller quantities and at higher prices than wholesale. Retailers buy goods in bulk from wholesalers or manufacturers and sell them individually to consumers. This is a business-to-consumer (B2C) model. Retailers focus heavily on customer experience, marketing, and convenient locations such as shopping malls or high streets

Key Differences Summary

Aspect| Wholesale| Retail
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Target Audience| Businesses (e.g., retailers)| End consumers
Sales Volume| Large bulk orders| Individual or small quantity sales
Pricing| Lower price per unit, smaller profit margins (15-30%)| Higher price per unit, larger profit margins (30-50%)
Customer Interaction| Limited, not customer-facing| High, focused on customer experience
Location| Warehouses near transport hubs| Stores in malls, high streets
Inventory| Fewer product types, large quantities| More product variety, smaller quantities
Payment Terms| Invoice billing, credit verification| Immediate checkout

In essence, wholesalers supply goods to retailers or other businesses, while retailers sell those goods directly to the final consumer