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Answer» The retailer is one who purchases goods from wholesalers, deals in small quantities of goods but his business is not specialized in one line of goods and he sells goods to ultimate consumers. Differences between Wholesalers and Retailers: | Basis of Difference | Wholesalers | Retailers | | 1. Nature of Business | They purchase goods from producers and sell them to retailers for the purpose of further sale. | They purchase goods from wholesalers and sell them to consumers for the purpose of consumption. | | 2. Quantity of purchases | They purchase goods in large quantities and sell them in comparatively smaller quantities to retailers. | They purchase goods in small quantities from a wholesaler and sell them in still smaller quantities to consumers. | | 3. Nature of Transactions | Credit is the basis of wholesale trade. | They generally do cash transaction. | | 4. Scale | They carry the business on a very large scale. | They carry the business on both, small as well as large scale but usually on small scale. | | 5. Capital | Huge capital is required by them. | They do not require huge capital. | | 6. Position | They are a link between producers and retailers. | They are a link between wholesalers and consumers. | | 7. Commodity | They deal in less number of commodities | They deal in many commodities. | | 8. Place of Business | Their business is spread in a very wide area. | Their business is centralised in one place. | | 9. Buyers | They sell goods to dealers or industrial users. | They sell goods to ultimate consumers. | | 10. Knowledge of Business | They have full knowledge of the situation in the market. | They have full knowledge of the taste and requirements of the consumers. | | 11. Price | Wholesale price is lower than the retail price. | Retail price is higher than the wholesale price. |
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