1.4.4 Wholesalers and Retailers
Completion requirements
Wholesalers are companies that purchase goods with the purpose
of reselling them to retailers. Often, wholesalers purchase products from several producers or agents, and sell to numerous retailers.
Wholesalers sell goods in large quantities to retailers. (Note: A
wholesale/outlet store is not a wholesaler.)
Retailers sell products to consumers. Retailers can create a store environment, but non-store retailers sell through alternative methods such as mail order catalogues or Internet sites. Retailers sell goods in small quantities to consumers.
Costs: Wholesalers pay less for products than retailers pay.
Competition: Competition is less in a wholesale business than it is in a retail business.
Products: Wholesalers deal with fewer kinds of products than retailers deal with.
Advertising: Wholesalers don't advertise; retailers do.
Retailers sell products to consumers. Retailers can create a store environment, but non-store retailers sell through alternative methods such as mail order catalogues or Internet sites. Retailers sell goods in small quantities to consumers.
Costs: Wholesalers pay less for products than retailers pay.
Competition: Competition is less in a wholesale business than it is in a retail business.
Products: Wholesalers deal with fewer kinds of products than retailers deal with.
Advertising: Wholesalers don't advertise; retailers do.
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