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Identify who would sell your product to the consumers. Is it going to be you, or would you want someone else to sell it for you? If you sell it directly to the buyers, be it online, through a pop-up shop, or exhibits, then you sell in retail. If you sell the items to another seller and in bulk, then you are a wholesaler.
In business terms, wholesaling is also known as distributing. It is the direct production of products for the ultimate distribution through retail trade channels. Wholesaling allows an expanded consumer market potential since all the goods pass through a middle agent. They have a larger market base since sellers are in different locations who know where to reach the customers. And finally, wholesaling has the ability to control supply and demand; thus, adjusting the quantity of items to deficit areas.
Retailing, on the other hand, is a business that anticipates the needs and wants of the consumers. Sellers have direct link to customers which can build loyalty especially those who are put off by online marketing. Unlike wholesaling, retailers can market their products directly with increased sales potential. With a retail outlet, selling can be done with lesser conflicts and allows greater inventory options since a retail business produces goods for itself.
In retailing, one can make immediate business decisions while in large-scale wholesaling, even C-level positions would need higher level permission and policies.
• Wholesalers can control supply and demand
• Wholesalers distribute items via trade channels
• A retailing business can build customer loyalty
Source: Cleofi-Krista Capili, Special to Classifieds
The writer is a freelancer