What is a retail business?

The word “retail” refers to a type of business where merchants sell products or services to individual consumers for personal use. Learn more in this post. Retail describes the sale of a product or service to an individual consumer for personal use.

What is the difference between retail and wholesaling?

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit.

What is the business model of retailing?

The business model of retailing involves buying merchandise in large quantities from wholesalers (or manufacturers) at low price and selling it in small quantities to the general public at higher price. The difference in price is called gross profit, and this gross profit pays for the company’s operations.