Wholesale vs Retail: Which one is the right for you?

Wholesale vs Retail: Which one is the right for you?

Are you having a great product in mind with good potential, but you’re confused about how to launch it? Well, you have two options. You can either sell it as a wholesaler or retailer. We understand that it’s not easy to choose between the two. 

Here in this article, we’ll talk about all the nitty-gritty detail of a wholesale and retail business. We’ll tell the pros and cons of both business models. You can do a cost-benefit analysis at the end of this article and decide which model is best for your product. Trust me; you wouldn’t have any ambiguity by the end of this article. 

With the rise of wholesale stores online, it’s always good for retailers to get their desired products from wholesalers online. Even if you’re not looking to get started with selling your product, knowing all about wholesale and retail business would benefit you in the long run. For instance, you might plan to create your retail store in the future, then the information in this article would come in handy. 

However, many retailers struggle to find the right supplier. By the right supplier, we mean those suppliers that provide good quality products at a reasonable price. 

At NexDeal, we proudly claim that our customers get the best products at a very reasonable price. We ensure that the quality of the product is maintained. If you’re thinking of starting a retail business but not knowing what products to sell — visit NexDeal to see a range of winning products. 

Let’s find out about the wholesale and retail business and see which one is worth more.

Wholesale vs. Retail

First and foremost, we have to look at Wholesale vs. Retail and their differences. It’s essential to note the basics down to avoid trouble later down the line. 

So, let’s get started. 


So who’s a wholesaler? In simple words, a wholesaler purchases the products in bulk from a manufacturer and then sells them to the retailers or outlets. A middleman could get products from a wholesaler to a retailer. But, most of the time, it’s done without a middleman. And, that’s much better for the retailers as they’re looking for a wholesaler who has an online presence so that they can get rid of the hassle of going to every other wholesaler every time. 

Providing excellent customer service and a range of products for you to easily and quickly browse through, NexDeal offers it all — making it one of the leading Wholesalers in LA.

If you buy from a wholesaler, you’d usually have to purchase the products in large quantities. However, that’s not the case with all the products. The minimum order quantity for each of the products differs.


Now, let’s see who’s a retailer. A retailer is involved in selling the products to the end consumers. Don’t we all deal with retailers every time? Yes, we do. For example, you would have gone to the supermarket many times in your life. The person who runs that store is a retailer, as they get the products from a wholesaler and then sell it to you. Though they’re not just restricted to buying the products from the wholesaler, the retailers can also manufacture their products and sell them to the end-user. 

Benefits of a Retail Business

As a retailer, you’d have uncountable benefits. Whether you’re a retailer or a wholesaler, you’ve got to know about them. So, let’s find out the pros of a retail business. We’ll talk about them over here one by one. 

Targeted Consumer Base

When you’re running a retail business, you’re the boss. You can decide on everything like which consumer base you’ll target, the price you’ll set, promotions you offer, etc. In a retail business, you target a specific population most of the time. And if you think that targeting a whole population works better than targeting a particular group. Then, you’re not right. As the saying goes, “ if you’re selling for everyone, you’re selling for no one.” That’s why make sure that you have a defined audience. 

However, before you even decide about a targeted consumer base, you’d have to think about whether you should build a brick-and-mortar shop or start an online store. Both the models work. But, let us tell you that with the rise of e-commerce, it’s always better to start with an online model. You can reach out to millions of customers if you create an online store. On the other hand, you don’t even have to go outside your house to start an online business. You can do it in the comfort of your home.

And, you shouldn’t worry about what products you should sell if you haven’t decided yet. You can browse through NexDeal’s extensive catalog online for free and get an idea right now!

Get in touch with Nexdeal to know more about high-quality products you can purchase and sell to the end consumer by keeping your profit margin. 

Don’t we all do some sorts of research on the product we are looking to get or maybe look at the restaurant’s rating that you’ve planned to visit? Once you’ve decided about the product you’ll sell online and know about the right wholesaler from where you’ll get it, it’s time to develop an online presence — perhaps one of the most crucial aspects of starting your business. 

Internet serves as an ideal place to know anything about someone’s business, and let us tell you that your sales would have a drastic effect if there were negative reviews online about your business. 

It’s not challenging to generate money as an online retailer. You have multiple channels to advertise your business online and get customers to buy your products. If you have a solid online presence with great client testimonials, it will serve as one factor that will pave your way to the success of your online business. 

Personal Connection

Operating as a retailer would allow you to connect with your customers directly, meaning there wouldn’t be any middleman involved in a retailing business. This way, you would get to know about your consumer’s preferences. For example, what they’re looking for, which product is most ordered, what color gets out of stock fast. Once you know all these, you’d know what exactly you should keep in your store and what to avoid. 

On the other hand, you can maintain good customer loyalty and retain them so that they don’t look elsewhere if they need that specific item. For instance, if you have an online store of shoes, your customers would repurchase from your store if they find it to be good quality.

Moreover, you can use different types of strategies for retaining your customers. You might consider sending valuable emails to them once in a while. It’ll help you to build long-term connections with them.  

Control Over the Brand Identity

Having your retail shop, you can have brand identity the way you want it. You have the power to control all aspects of your store’s branding. If you look at some well-known brands like Mcdonald’s, Subway, KFC, etc., they have a particular brand identity. They’ve built that identity, and they don’t deviate from that. You should also create a brand identity for your business. 

Price and Profit Margin

When you get products from a wholesaler, you have to analyze your profit. A detailed cost-benefit analysis is of utmost importance as it tells how much money you get for yourself at the end of the month, excluding all expenses and overhead costs. 

Try to get a product with a good profit margin. Some products could even give more than 100 percent profit if you do the calculation. So, should you go ahead with it? Well, most people would say yes without thinking twice. However, let us tell you that you might make the wrong decision by going ahead with any product with a profit margin of more than 100 percent. 

Little Confused? Let us break it down.

Suppose you get a pen from a wholesaler at $0.15, and if you sell it to the end consumer at $0.45, you earn $0.30 per pen, which is 200 percent profit! Now, the profit percentage is a lot. But, what about the profit? Just $0.30 per pen! That’s too little. So, would you consider going ahead with making an online store for pens? Not at all, right? 

Now, Imagine getting an Astral chain video game from a wholesaler at around $40 and selling it to the end consumer at $55. Although the profit percentage is low, the profit is $15, and that’s much more than the profit you make by selling a pen. 

Therefore, you have to choose a product by considering how much profit you can make from it and not the profit percentage. 

Are you interested in purchasing video games? Check out NexDeal’s video games category available at competitive market pricing. 

Benefits of Wholesale business

We have looked at the benefits of retail business. Now, let’s see what the benefits of a wholesale business are.

Brand Awareness

As a wholesaler, you can ensure that products are available at many outlets. The customers don’t have to contact you directly for a particular product but can get it from any shop that has your product. That builds brand awareness. 

Global Expansion

Global expansion is one of the good perks of selling wholesale products. Wholesalers can directly link with international clients, and if they approve the product, they can get an order of many products. The wholesaler can save lots of money from just a single order. 


Whether wholesale or retail, each type of business model has pros and cons. The best perk of working as a retailer is that you don’t have to create brand awareness for a product, as you’d only get those already established items, which would ensure that you start getting sales from day one. However, becoming a retailer seems much more feasible nowadays as you can save yourself from a lot of hassle. 

Browse through NexDeal’s website to know more about retail business and get top-notch products.