question_answer

Differentiate between retail trade and wholesale trade.

Answer:

Ans.     Major differences between wholesalers and retailers are as follows:

Wholesalers	Retailers
(1) They are connecting links between the manufacturers and the retailers.	(1) They are connecting links between the wholesalers and the customers.
(2) They purchase goods in large quantities from the manufacturers.	(2) They purchase goods in small quantities from the wholesalers.
(3) They deal in limited number of products.	(3) They deal in variety of products for meeting the varied needs of consumers.
(4) They need more capital to start their business.	(4) They can start business with limited capital.
(5) The display of goods and decoration of premises is not necessary for them.	(5) They lay more emphasis on window display and proper decoration of business premises in order to attract the customers.
(6) Their business operations extend to different cities and places.	(6) They usually localise at a particular place, area or city.
(7) They do not directly deal with the customers.	(7) They have a direct link with the customers.
(8) They do not extend free home delivery and after sales services,	(8) They provide free home delivery and after sales services to the consumers.