It is important to know the distinction between the two; wholesale refers to goods sold on a larger scale to retailers, businessmen etc and not direct to the consumer whereas retailers deal with selling the product to the end user. In short, the retailer serves the purpose of a middleman between the wholesaler and the end user. Now the question is can a wholesaler also operate as a retailer at the same time?  The answer is yes! It really depends on the priorities, circumstances and needs of the wholesaler who will naturally go for the more profitable option.

There are so many options, scenarios, circumstances that come around in answering such a question. For example a wholesaler can try posting the MSRP (manufacturer’s suggested retail price) and then retail at a lower price than that. Some may wonder what the point of an MSRP is when you don’t have to follow it, so to stay in the market; the wholesaler can try selling the product himself at the MSRP. Trying to compete with the manufacturer is a bold move. There is no reason for a reseller to be a reseller of your products if you are their competition unless you give them room to sell at a lower price than you’re selling at.

It must be acknowledged however that several benefits exist for having intermediaries between the manufacturers and the end user. This would prove to be a far more efficient process of product delivery and handling. Moreover a better assortment of products, an improved flow of transactions which reduces the costs of distribution as well, and easier searching for goods as well as customers can be achieved by having a middleman.

Fact is that it is possible to operate as a wholesaler as well as a retailer at the same time but statistics favor wholesale in regard to the fact that it is more profitable. Products are sold at a lower price but in bulk, causing an eventual spike in profit.

Contrarily retailers are there for some reason, and that is the money. Regardless of the hassle, not to mention the extra expense as compared to a wholesaler, they still make more money. With a good venue and a good product, you can make money hand-over-fist by selling retail.

So it all boils down to the priorities, options and scenarios for example for the woman who weaves shawls one at a time, retailing her luxury product is the best option. For the businessman who manufactures bulk items, wholesale is the better option.