Understanding Advantage Wholesaler supplier Vs Retailer

  

Wholesale and retail are vital links in the supply chain industry. Though their nature of work differs, each of these parties is vital in the growth of a business. If any of the links go missing, the entire supply chain system will crash.

 

Manufacturer to the complete sales channel

 

The wholesaler is the first person after the manufacturer who initiates the sales process. They sell goods to customers via retailers. They buy products in bulk quantity and then sell them to the retailer. As a result, they offer many benefits to the buyers.

 

Before getting into the business, a comparison between wholesalers and retailers entails the advantages you will have when dealing with a wholesale supplier.

 

Top 6 advantages of using a wholesaler supplier

 

1.      Target customers: The major difference between wholesalers and retailers is that wholesalers connect with the manufacturer on one end. Wholesale suppliers connect with retailers, small and medium industries on the other end. Retailer relies on wholesaler to get goods. He further interacts with customers for over-the-counter sales.

 

2.      Size of the inventory: The wholesaler specializes in one domain only. So, they may have extensive range of the products to display them before customers or retailers. Their main target is to sell in bulk. Retailers buy small lots for reselling.

 

3.      Rates: The rates of the wholesale supplier are low as compared to retailers. The difference between the wholesale and retail prices is moderate to high. The retailer sells products per unit at a higher price compared to the wholesaler.

 

4.      The volume of transaction: Since wholesalers sell goods in large quantities, the earning potential is good. While the retailers sale in small batches, so transaction amount will be lowerand so, the sales are much less than a wholesaler. One needs to put in more efforts in marketing to bring sales.

 

5.      Marketing: Marketing is an elaborate field involving selling skills and promotions. The wholesale supplier does not need advertising or any promotion. He must have strong PR and social contacts. Yet, self-promotion and advertising are mandatory for retailers. Strategic marketing maximizes your reach to the customers. So, a retailer needs to push hard.

 

6.      Area of operation: Wholesalers work across cities irrespective of boundaries, whereas the retailers narrow down to a particular city. They sell through well-groomed shops.

 

Capital Requirement

 

The capital investment is high for the wholesaler, but it brings massive turnover too! The wholesale and retail trade examples suggest you can start retailing business with small investment. 

 

Conclusion

 

Wholesale, in general, offers a more professional environment. Advantages of using a wholesaler are to get goods at much lesser prices and save the efforts that goes in during the manufacturing.

Price is the definitive plus point with the supplier. The retailer can have one-to-one interaction with the customer. So their response in real-time helps them understand the exact need.

 

The several benefits of wholesale v/s retail listed above will be a crucial help in knowing which is better to sell wholesale or retail.