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Principles of Business Management

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Reflect (10 points)
On your assignment sheet, answer the questions about distribution.
What is the difference between a wholesaler and a retailer? (1 point)

User Yurilo
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Final answer:

A wholesaler buys from manufacturers and sells to retailers, while a retailer sells directly to consumers.


Step-by-step explanation:

A wholesaler is a business that buys large quantities of products directly from manufacturers or producers and sells them to retailers or other businesses. They typically operate in a business-to-business (B2B) environment and are responsible for distributing products to retailers at a lower price for resale.

On the other hand, a retailer is a business that sells products directly to consumers. They purchase products from wholesalers or manufacturers and sell them to individual customers through physical stores, online platforms, or other channels.

For example, let's consider a clothing industry. A wholesaler would purchase large quantities of clothing items from manufacturers and sell them to retail stores. The retail stores would then display the clothing items and sell them to individual customers.


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