What are the key differences between retail and wholesale? But by selling products on their website and in stores, they also act as a direct-to-consumer (DTC) retailer. They then sell products in bulk to retailers. They receive parts from various wholesalers and then assemble those parts into products like iPhones. In this scenario, Apple operates as a manufacturer, wholesaler, and retailer. However, you can also buy products directly from an Apple store or off the Apple website. You can purchase Apple products in stores like WalMart or Best Buy, or through your cell phone carrier. In this case, General Mills is both the manufacturer and the wholesaler.Īnother example of this is Apple. They then distribute cereal to grocery stores that sell goods to the end-user. For example, General Mills produces various foods, including cereal. Wholesalers can also be retailers and manufacturers. A wholesaler would allow you to purchase lumber in bulk to meet your needs.īut wholesalers don’t have to stick to wholesale. Perhaps you open a couple different factories who each go through hundreds of pieces of lumber per day. You could walk into your local hardware store and purchase lumber - you likely did this when you set up prototypes and initial products.īut as your company grows and demand increases, you’ll need large quantities of lumber.
So imagine you’re a manufacturer, and you need raw materials - let’s say lumber. The more you buy from a wholesaler, the less per-product you’ll end up having to pay. Instead, they sell products in bulk at a low price. Wholesalers don’t sell small quantities of goods like retailers. Wholesalers are those who sell products to businesses or other outlets who are not the end-user. Retailers, especially when compared to wholesalers, sell products at much smaller quantities. But this is not considered a standard order, and it would probably take some time to fill. Sure, you could technically purchase 100 printers from a Staples if your business grew to that size. Typically, retailers sell small quantities of goods. For instance, if you need a printer for your new business and purchase one at your local office supply store, like a Staples or an Office Depot, you’ve participated in a retail-based transaction.
Similarly, if you’re buying goods for your own use, the transaction will be a retail-based one. If you’re selling products and do so only with the intent of distributing “final products,” then you can consider yourself a retailer. Retailers act as a middleman between wholesale companies and consumers. The definition of retail doesn’t so much concern the type of distribution channel as it does the parties involved. What distinguishes a retail transaction from a wholesale one is the fact that the sale involves the end buyer. Types of retail stores include, but are not limited to: Retail sales can involve a variety of products and can occur through numerous distribution channels. Retail involves the sale of goods or services directly to the end-user.