The basic differences between wholesaling and retailing are as follows:
| Basis of Difference | Wholesaling | Retailing |
| Concept | Wholesaling is based on B2B concept. In this, the consideration is not given to the final consumer. | B2C model is used by the retailers. As business is conducted in direct contact with the final consumer, the consumer plays a very significant role in retail business. |
| Initial Investment | A huge amount of capital is required for starting a business in wholesaling. Huge investment is required is the level of business in wholesaling is quite large. | Retailing can be considered as a relatively smaller business in comparison to the wholesaling and a small investment is required to initiate this venture. |
| Target Audience | Businessmen, traders and retailers are the main target customers in wholesaling. The products are sold and delivered to those entities who are actively participating in the business and they further sell the product to the other individuals or middle man. | Individual buyer is the target customer in case of retailing. The different products and services are collected from the wholesaler and then they are transferred to ultimate customer. |
| Quantity Involved | Only bulk quantities are sold by wholesaler. The products are sold to different retailers who further sell the products to ultimate consumer. | The quantities of the products to be sold depend upon the requirement of the customers. The products are sold in smaller quantities. |
| Profit Margins | Profit margin is kept for huge quantities; and thus, the profit of the wholesaler is quite high. | The overall profit is relatively low in retailing as lesser number of products is sold. This is true even when higher margins are provided to retailers |