Questions Business and Entrepreneurship

What is the difference between retail and sale?

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Airtract

Parvez Mehta

Be productive not busy

Mostly sales and retail are considered as a synonym of each other, but they are not. Retail is a transaction which involves the selling of goods and services to the consumers to earn a profit. Retailers play the role of a middleman between wholesalers and customers. They buy the products from wholesalers in large quantities and then sell them to the consumers. The price of commodities purchased from retail is much higher than that of the wholesaler. It includes the cost like profit margin, advertisement expense, workers' salary, rent of store, electricity bill, etc.

A sale means selling of goods or services to a purchaser where the purchaser can be a retailer or customer. The transfer of title (ownership) is done in response to money or value. A sale could be wholesale, where the product or service can be resold to an end user or retail where it could be a transaction between a retailer and customer in which product cannot be resold.

The primary difference between sale and retail is that sales of good to an end customer is retail whereas sale purchase is just an act of selling of product to a purchaser. Retail is a subset of the sale so, all retail will be part of sales, but all sales won't be part of retails. For more simple understanding consider a company X; after manufacturing a product, the company sells it to different a wholesaler who in turn sells the product to different retailers who sells the goods to the end customers. Here all the transactions made during the procedure come under sales whereas only last deal comes under retail. This transaction process consists of a manufacturer, wholesalers, retailers, and consumer. The wholesaler is directly connected to the manufacturer while the retailer is directly related to a wholesaler, not to the manufacturer. The price of the product also changes at every level as on every level different expense is added to the cost of the product, so the rate at wholesaler's level will always be lower than that at retailer's level. There is also a difference between sales jobs and retail jobs; retail jobs comprise of storefront jobs which deal with walk-in customers whereas sales jobs may or may not be storefront jobs. Retail workers have a specific wage whereas sales workers have a base pay wage with a commission on goods sold.

Airtract

Shabar Raahim

The best is yet to come

Many of you may be confused between the two terms retail and sales. The first thing you need to know is that these are two different terms. A sale is considered a part of retail, but retail cannot ever be a part of sales. This is one of the biggest differences between the two.


What is the sale?


When it comes to a sale, there is always an exchange of products and services for some remuneration. A sale can also be wholesale, which means the goods and services can again be sold to another end customer.


What is retail?


In contrast to sales, retail is when a transaction takes place with the end consumer. Also, retail good is not available in wholesale. It takes place on a much smaller scale.


What is the main difference?


The difference between the two terms can be described in the following pointers:


1. In comparison to retail, sales take place on a larger scale. In a sale, there is a voluminous quantity of products available at a meager price. Whereas a retail business sells goods to end consumers and make small profits out of it.


2. There is a huge difference in price between the goods available for sale and those sold in a retail outlet. That’s because items on sale are always sold cheap than retail goods.


3. When you avail goods from a retail shop, you usually get quality goods. But when it comes to a sale, there is no guarantee of quality at all.


4. A sale is temporary but retail outlets are not. They are permanently there. 


So these are some of the main differences that set sales and retail apart. Next time when you come across these two terms, hopefully, you won’t get confused.

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