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Wholesale Versus Retail Selling

Are you thinking about opening your own business? Sure, you love your current job and it gives you security. But are you happy? Is that what you really want to do for the rest of your life? If you want to be your own boss and do what you love, opening up a wholesale or retail business can be a dream come true.
If you want to be a wholesaler, you get to earn money by supplying to other businesses but it can be boring as you don’t really get to meet with the actual users of your products. If you want to be a retailer, your profit may be slower but you get to actually talk to your customers face-to-face and get to see the smiles on their faces.
If you still don’t know which business to get into, here are clear differences between the two to help you decide:
By Definition
A retailer is defined as a middleman in selling the products of the wholesaler directly to the customers, while the wholesaler is responsible for selling products by bulk or packages to the retailer. Wholesalers can sometimes be called as the supplier for the retail seller.
A wholesaler sells his products in many pieces and in a lesser price than of the retailer. A retailer gets to increase the price of the product the he bought from the wholesaler.
Advantages and Disadvantages of a Wholesaler
There are advantages and disadvantages of being a wholesaler. Advantages of being a wholesaler is you get to sell your products in bulk to any interested retail stores. However, there’s a major disadvantage when you supply a big number of items to a single store. If that business closes down, you’ll lose a significantly large amount of your income, leaving you to look for other businesses to supply to with your stocked inventory.
Advantages and Disadvantages of a Retailer
There are also advantages and disadvantages of a retail business owner. Advantages of being in the retail business are you get to sell the products directly to the interested customers, and can make changes on the next order of supplies from your wholesaler and changes on the prices of the products. However, the disadvantage of being in the retail business is you can’t really buy products in small quantities because your profit will suffer. You’ll need to buy a lot of one single product to make the best profit.
Being a retailer also requires a lot more than just selling. You’d have to invest on a physical store or a website, design the visual merchandising or the graphics for site, and change the look of your store every now and then to keep customers interested. It’s exhausting but if you love to sell, a retail business is for you.
In conclusion, if you want to work with other businesses, then a wholesale business is for you. If you want to meet your customers face to face on a daily basis, then retail is your right path. If you want a faster and a more secure income, then become a wholesaler. But if you want bigger profits and want to take risks, become a retailer. One thing is certain if you do nothing you will remain an employee and there is nothing wrong with that. However if you try at running your own business then the sky is the limit so give it a go and see where the journey takes you, you may be pleasantly surprised.