Wholesalers and retailers play distinct roles in the supply chain, each with its own advantages and challenges. India’s retail sector is among the largest in the world and is projected to reach $2 trillion in the coming years. Meanwhile, wholesale prices in India rose by 2.31% year-on-year in January 2025, marking the 15th straight month of inflation. Overall, this means both wholesalers and retailers must adapt to demand, shifting costs, and market conditions to stay profitable.
So, if you’re considering starting a business, knowing who is a wholesaler and who is a retailer will help you decide where you fit in.
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In this blog, we’ll break down:
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What Is The Difference Between Wholesale & Retail?
The wholesale and retail difference goes beyond just pricing or bulk sales. Both models serve different markets, follow unique business approaches, and require distinct operational strategies.
What is Wholesaling?
Wholesaling refers to selling products in large quantities to businesses rather than directly to consumers. The concept of wholesaling is to act as intermediaries between manufacturers and retailers, ensuring that goods are distributed efficiently in the supply chain.
What is Retailing?
Retailing involves selling products in smaller quantities at a marked-up price directly to consumers. It focuses on customer experience, convenience, and brand presentation, as the buyers of this business model are end consumers who make purchasing decisions based on product appeal, pricing, and availability.
Wholesaler and Retailer: Differences in Market and Strategies
Let’s learn more about the differences between the two business models by comparing what wholesalers and retailers do.
What is a wholesaler?
- A wholesaler buys goods in bulk from manufacturers and sells them to retailers or other businesses.
- A wholesaler acts as the middleman, offering products at a lower price per unit because of bulk purchasing.
- A wholesaler usually operates in industrial zones, trade hubs, or online B2B marketplaces.
What is a retailer?
- A retailer is the final link in the supply chain, selling products directly to customers.
- A retailer purchases goods from wholesalers and adds a markup to cover costs and profit before selling them to end consumers.
- A retailer sells directly to individual consumers who purchase products for personal use.
- A retailer usually sets up shop in malls, high streets, or e-commerce platforms catering to everyday shoppers.
Factors
Wholesaler
Retailer
Target Audience
Businesses (Retailers, Institutions)
Individual Customers
Order Size
Bulk quantities
Small quantities
Profit Per Unit
Lower
Higher
Capital Investment
High
Moderate to High
Marketing Focus
Minimal marketing, B2B relationships
Heavy marketing, B2C sales
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Types and Examples of Wholesalers in India
Merchant Wholesalers
These are the most common wholesalers—they take ownership and buy goods in large quantities from manufacturers, store them in warehouses, and resell them to retailers or other businesses.
- Example: Metro Cash & CarryMetro Cash & Carry is a leading merchant wholesaler in India, supplying kirana stores, hotels, and restaurants with a wide range of products, from groceries and dairy to household essentials and electronics. Unlike traditional wholesalers, Metro operates on a membership basis, ensuring only registered businesses can purchase from its warehouses.
Agents & Brokers
Without taking ownership of goods, agents and brokers act as intermediaries, connecting manufacturers with businesses and earning a commission per transaction. These wholesalers are critical in industries where pricing, sourcing, and market conditions fluctuate.
- Example: Royale Realtors IndiaRoyale Realtors India is a luxury real estate agency specialising in prime locations in South Delhi. They provide a range of premium luxury properties, including villas, land, apartments, builder floors, flats, bungalows, duplexes, triplexes, and offices. Established in 1990, the company has assisted over 500 families and numerous multinational companies in finding properties in South Delhi.
Export/Import Wholesalers
Export/import wholesalers specialise in cross-border trade, managing logistics, regulatory compliance, and distribution of goods between countries. They enable businesses to access international products while also helping Indian manufacturers reach global markets.
- Example: Shree Hari KaliyaShree Hari Kaliya, an entrepreneur from Latur, exemplifies the success of export/import wholesalers in India. He started by sourcing high-quality pulses from local farmers and exporting them to markets in the Middle East, Europe, and North America. Understanding the complexities of international trade, he invested in processing and packaging to meet global quality standards. Overcoming challenges such as fluctuating exchange rates and regulatory hurdles, his business grew into a key player in India’s agricultural exports.
Types and Examples of Retailers in India
Department Stores
Department stores are large retail outlets that sell a diverse range of products under different sections, from fashion and electronics to groceries and home essentials. These stores provide a one-stop shopping experience, catering to various customer needs while maintaining premium store layouts and services.
- Example: Shoppers StopShoppers Stop is a prime example of a successful department store chain in India. Launched in 1991, it pioneered modern retailing and now operates 83 stores across 38 cities. The company offers international, national, and private-label brands and has adopted omnichannel strategies to integrate online and offline shopping.
Convenience Stores
Convenience stores are small, easily accessible neighbourhood outlets that stock everyday essentials like groceries, snacks, and household items. Unlike department stores, they focus on quick purchases rather than extensive variety, making them ideal for customers who need fast, on-the-go shopping solutions.
- Example: 7-ElevenA global leader in this segment, 7-Eleven revolutionised convenience shopping when it began in 1927. Today, it operates over 83,000 stores across 19 countries, making it the world’s largest convenience store chain. Known for its 24/7 operations, 7-Eleven provides customers with quick access to essential products, including ready-to-eat meals, beverages, and personal care items.
E-Commerce Retailers
E-commerce retailers sell products online and deliver them directly to consumers, reshaping how people shop by offering convenience, variety, and competitive pricing. India’s online shopping market is projected to grow at an annual rate of 18.7%.
- Example: The Label LifeThe Label Life is an example of a successful e-commerce brand in India. Founded in 2013 by Preeta Sukhtankar, it offers a curated selection of fashion, accessories, and home décor. Reflecting on e-commerce’s appeal, co-founder Yashika Punjabee states, "E-commerce is a fast-paced, dynamic future of the old retail industry, so there was no way I could stay away. The thrill of converting a buyer who can't see and feel the product, to trust the brand and buy the product is unparalleled." This approach has helped The Label Life carve a niche in India's highly competitive online retail space.
Which Business Model is Right for You?
Choosing between wholesaling and retailing depends on various factors, including investment capacity, risk tolerance, and personal preference.
Wholesaling is ideal if:
- You prefer dealing with businesses rather than individual customers.
- You can invest in large inventory purchases.
- You have access to storage and distribution channels.
Retailing is ideal if:
- You want to interact directly with customers.
- You enjoy branding, marketing, and customer engagement.
- You have a smaller initial investment and want higher profit margins.
Borzo: Your Trusted Partner for Wholesale and Retail Logistics
Need a reliable delivery partner for your wholesale or retail business? Borzo ensures quick, efficient, and cost-effective courier services. Whether you're sending bulk orders to retailers or delivering products to individual customers, Borzo streamlines your logistics with fast, affordable shipping solutions. Get started with Borzo today!
Wholesale versus Retail FAQ
Can a business be both a wholesaler and a retailer?
Yes! Many businesses use a hybrid model, selling in bulk to other businesses while also offering products directly to consumers, often through online platforms. Companies like Amazon and Costco operate both as retailers and wholesalers. Amazon Business supplies bulk products to companies, while its main platform serves individual customers. Costco, known for its warehouse-style retail, offers bulk pricing to members, functioning as both a retailer and a wholesaler.
Do wholesalers need to market their products?
Yes, but their approach is different from retailers. Instead of targeting individual customers, wholesalers focus on building relationships with retailers, manufacturers, and distributors. They rely on direct outreach, networking, trade shows, and industry connections to attract buyers. Many also use digital marketing, SEO, and business directories to increase visibility and make it easier for potential clients to find them.
Why don’t retailers buy directly from manufacturers?
Some retailers do purchase directly from manufacturers, especially large chains with high purchasing power. However, most retailers rely on wholesalers because wholesalers break bulk, allowing retailers to buy smaller, manageable quantities instead of committing to massive orders. This is particularly beneficial for small and medium-sized retailers that lack the storage space or capital to handle bulk inventory.
Additionally, wholesalers provide product variety from multiple manufacturers in one place, saving retailers the hassle of negotiating separate deals with different suppliers. They also streamline logistics, offering faster restocking and more flexible purchasing options.
Is Walmart a retailer or a wholesaler?
Walmart is primarily a retailer, selling products directly to consumers through its extensive network of stores and e-commerce platforms. However, it also has wholesale elements, such as bulk pricing and its Sam’s Club division, which caters to businesses and individuals seeking wholesale discounts. Unlike dedicated wholesalers, Walmart does not sell in bulk to retailers but competes by offering low-cost pricing at scale.
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