Retailing and Wholesaling
There are two main types of reselling: Retailing and Wholesaling. To put it simply, retailing is business-to-consumer and wholesaling is business-to-business. However, they both have the same goal of creating value for targeted customers. Now, for a little more detail...
Retailing, mostly done by retailers, includes the activities involved in selling the end-product (or services) to the consumer, where it will be used for non-business use. This form of reselling is important in most marketing channels. A few examples of major retailers are Walmart, Costco, Macy's, and Home Depot because their sales come mainly from retailing. Retailers can be classified in different ways, including the amount of service, product lines, relative prices, and how they are organized. Types of retailers include: specialty store, department store, supermarket, convenience store, discount store, off-price retailer, and superstore.
Wholesaling includes the activities involved in selling the end-product (or services) to businesses to be used or resold to consumers. This form of reselling is mainly done by wholesalers because their sales mainly come from wholesaling. Wholesaling companies usually work directly with producers and sell to other wholesalers, businesses, or industrial consumers, at a low price and in large quantities. Just as there are different types of retailers, there are also different types of wholesalers: merchant wholesaler, broker, agent, and manufacturers' sales branches and offices.
Retailing, mostly done by retailers, includes the activities involved in selling the end-product (or services) to the consumer, where it will be used for non-business use. This form of reselling is important in most marketing channels. A few examples of major retailers are Walmart, Costco, Macy's, and Home Depot because their sales come mainly from retailing. Retailers can be classified in different ways, including the amount of service, product lines, relative prices, and how they are organized. Types of retailers include: specialty store, department store, supermarket, convenience store, discount store, off-price retailer, and superstore.
Wholesaling includes the activities involved in selling the end-product (or services) to businesses to be used or resold to consumers. This form of reselling is mainly done by wholesalers because their sales mainly come from wholesaling. Wholesaling companies usually work directly with producers and sell to other wholesalers, businesses, or industrial consumers, at a low price and in large quantities. Just as there are different types of retailers, there are also different types of wholesalers: merchant wholesaler, broker, agent, and manufacturers' sales branches and offices.
An example of a wholesaling company is WASH, which we did our marketing plan on. WASH is an established company, that we tied our new product, Swipe-A-Load to. Although WASH does not sell to everyday consumers like you and I, it does sell to companies, apartment complexes and universities. Although WASH does not manufacture the Swipe-A-Load units themselves, they do have their title put on the products they manufacture. This makes WASH a merchant wholesaler. There are many different types of merchant wholesalers, and WASH falls under the limited-service wholesalers because they offer a limited number of products and services.