What is the difference between wholesale trade and retail trade ? Are the shops in our neighbourhood constitute retail trade or wholesale trade ? 

Dear Student
S.No Basis of Difference Wholesale Trade Retail Trade
1 Meaning In wholesale trade, goods are sold in large quantities to retailers or other business. In retail trade, goods are sold to final consumer in small quantities.
2 Price of product Price of product is low. Price of product is high.
3 Volume of Transaction Volume of transaction is large in wholesale trade. Volume of transaction is small in retail trade.
4 Investment It requires huge investment. It requires small investment.
5 Area of operation In wholesale trade, area of operation is extended to various cities. It has limited area of operation.
6 Competition There is less competition. There is huge competition.
Shops in our neighbourhood area are engaged in retail trade. Wholesalers generally have there shops or godowns in market area.


  • 5
(i) Wholesale Trade :- Refers to buying and selling of goods in large
quentities. A wholesaler buys goods in large quantities from the producers
and sell them to other dealers. He serves as a connecting link between
the producer and retailer.
(ii) Retail Trade :- Refers to buying of goods and services in relatively small
quantities & selling them to the ultimate consumers.
  • 6
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