What are The Differences between Wholesalers and Retailers

1. The service object is different. Wholesalers make reseller and producer as their service object which belongs to the active sales. It is mainly for door-to-door selling in the business initially; Retailers make terminal consumer (individual or collective) as their service object which belongs to the passive sales. They often wait for the guest to make order.

2. In the process of circulation, their position is different. Wholesalers are starting point or intermediate link in the process of circulation. When wholesale trading is completed, the circulation of commodities is not over. The retailers are at the end of the circulation process. When goods are sold, they will leave the circulation field and go into the consumption field.

3. Trade quantity and frequency are different. Wholesalers are for resale and processing production business activities, so wholesaler's trading volume is large but trading frequency is low. It belongs to the capital intensive industry; retailers are mainly for odd lot, but the frequency is very high.

4. The setting of a business network is different. Wholesalers' site is less, but there involving market is wide. Most of them are set in places with cheap rent or online, such as goodscool wholesale electronics online store, it does not have limit of region; it is market are in global. Retail outlets should face the vast number of consumers. It is with large points and wide field. It commonly sets in prosperous regions.

5. Pricing profit margins are different. Wholesalers will give retailers very large space in profit in order to sell a big amount. General wholesale profit is 10-50% of the ex-factory price which is specifically decided by regulations of each business; Retailer's single profit can be 50-500% of the prime cost, but in the quantity, it does not dominate. So if they sell several pieces each day, general it is enough to maintain a small shop's overhead. Many of them can still earn money.

6. Input money, energy and risks are different. Wholesalers need to invest a lot of money to do less design. They also need more energy than retailers, and the risk is far greater than retail. If they succeed, they will get more profits, but if they failed, they will lose much. Retailers require many styles and small quantity. Then it is easy for consumers to choose and it is not easy to cause the backlog. Even if the management is not good, they will not lose much.

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