Wholesaler servers as a link between producers and retailers on the other hand, a retailer provides a link between wholesalers and consumers. Wholesaler is the first link, whereas retailer is the last link in the chain of distribution of goods.
2. Scale of operations:
A wholesaler carries on business on a large scale and requires huge capital. A retailer, on the other hand, deals generally on a small scale and capital invested in retail trade in relatively small.
3. Range of goods:
A wholesaler generally deals in one commodity. But a retailer deals in a large variety of goods and caters to the diverse needs of his customers.
A wholesaler generally sells goods to retailers on credit. But a retailer usually sells goods to consumers on cash basis.
A wholesaler can have a go down in a corner of the city and can supply goods there from. But the shop of a retailer needs to be located in the heart of the city to attract a large numbers of customers.
6. Profit margin:
A wholesaler has not to spend money on shop decoration etc., and has a large volume of sales. Therefore, he charges a smaller margin of profit than that charged by the retailer.
7. Display of goods:
A wholesaler need not display the goods. But a retailer has to display goods and decorate his shop in order to attract customers.
8. Impact on trade:
Goods sold by a wholesaler remain in distribution and are resold. On the other hand, goods sold by a retailer move out of the distribution channel and are finally used.
9. Source of supplies:
A wholesaler buys goods from manufacturers and their agents. On the other hand, a retailer generally buys goods from wholesalers and their agents.
10. Purpose of selling:
A wholesaler sells goods for resale. On the other hand, a retailer sells goods for ultimate consumption or use.