Purchase of goods with the purpose of reselling is called wholesale trade. A seller
who engages in wholesale trading activities is known as wholesaler.
Examples :-
Selling 50 kilograms of rice to a retailer
Selling a stock of cement to a contractor to construct a building
Characteristics of wholesale trade
# Purchasing goods for the purpose of reselling.
# Often selling large quantities of goods in
one transaction.
# Selling a few selected items.
# Unit selling price is relatively low.
# Providing trade discounts i.e. reducing a
certain percentage from the listed price of
goods in a sale.
Differences between retail trade and wholesale trade
Retailer and wholesaler are both middlemen engaged in distributing required goods
and services to consumers. However, depending on how the business activities are
conducted, the following differences can be observed between retail trade and
wholesale trade.
