What is Wholesale & Retail? Complete Guide for Beginners
What Do They Mean by "Wholesale"?
Wholesale means purchasing goods in bulk quantities and selling them to businesses (not directly to the final customer). Wholesalers offer lower prices because the buyers purchase larger quantities.
Simple Explanation
Wholesale = Buy bulk → Get lower price → Resell at higher price
For example:
A kidswear retailer buys 50 dresses at ₹250 each → then sells at ₹450 each.
Features of Wholesale Business
Wholesale stands on three main pillars:
✔ Bulk Quantity
Buy more → pay less per piece.
✔ Lower Per-Unit Price
Because wholesaler sells in large volume.
✔ Resale Purpose
Products are mainly for:
– Retail stores
– Resellers
– Boutique owners
– Online sellers
Wholesale mostly works in B2B (Business-to-Business) format.
What are Wholesale and Retail?
Wholesale and retail are connected, but they serve different people and purposes.
Wholesale
➡ Sells to businesses
➡ At lower prices
➡ Higher quantity
Retail
➡ Sells to final customer
➡ Higher prices
➡ Single or very few pieces
Difference Between Wholesale and Retail
| Basis | Wholesale | Retail |
|---|---|---|
| Buyer Type | Businesses | Consumers |
| Price | Lower | Higher |
| Quantity | Bulk | Single/Piece |
| Intention | Resale | Personal use |
| Example | Distributor → shop owner |
Shop owner → buyer |
Example of Wholesale to Retail Flow
Manufacturer → Wholesaler → Retailer → Consumer
This chain exists in:
✔ Clothing
✔ Electronics
✔ Toys
✔ Beauty products
✔ Grocery
Who is a Wholesaler?
A wholesaler is a person or business who purchases products in bulk and sells them at wholesale cost to companies or resellers.
What Wholesalers Do
✔ Stock inventory
✔ Provide better pricing
✔ Act as a link between the manufacturer & retailer
✔ Supply sellers & shops with regular quantities
Types of Wholesalers
-
Merchant Wholesaler
Buys products, stores them, and resells. -
Distributor Wholesaler
Supplies specific brands or categories. -
Manufacturing Wholesaler
The manufacturer directly sells at bulk price. -
Dropship Wholesaler
Ships to customers without storing goods.
What is Wholesale Resale?
Wholesale resale means buying items from wholesalers and selling them at retail prices for profit.
Who Can Become a Reseller?
✔ Boutique owners
✔ Facebook/Instagram sellers
✔ Offline shop owners
✔ Website owners
✔ Home business sellers
✔ WhatsApp group sellers
There is no huge investment needed.
Wholesale Profit Margin Explained
Margin means the difference between selling price and buying price.
Example Calculation
Wholesale Price: ₹300
Retail Selling Price: ₹450
Profit: ₹150
Margin Formula
Profit Margin % = (Profit ÷ Cost Price) × 100
In the above example:
(150 ÷ 300) × 100 = 50%
This is why many businesses prefer wholesale buying.
Is Amazon or Flipkart Wholesale?
Amazon and Flipkart are NOT wholesalers.
They are marketplaces where:
⭐ Sellers list products
⭐ Customers buy in single quantities
⭐ Price is retail
⭐ Delivery is direct to consumer
Some sellers on these platforms may sell at wholesale-like prices, but the platform itself is retail-focused.
Best B2B Wholesale Platform for Clothing Businesses
If you are planning to start a business, especially in kidswear, finding a reliable wholesale supplier is extremely important.
Business buyers expect:
✔ Bulk pricing
✔ Fast delivery
✔ Good quality
✔ New designs regularly
✔ Low minimum order
Introducing Pattu Mart
India’s Trusted Kidswear Wholesale Platform
Pattu Mart is one of India’s fastest-growing B2B wholesale suppliers for kids clothing and has become the preferred hub for resellers and small shop owners.
Why Pattu Mart is the Best Wholesale Platform
✔ Lowest Wholesale Pricing
Better margins for resellers and shop owners.
✔ Latest Trendy Styles Always Available
Including:
– Frocks
– Party wear
– Ethnic dresses
– Casual sets
– Tops & skirts
✔ Bulk Orders Made Easy
Even small buyers can start buying with a low MOQ.
✔ Fast Shipping Across India
Timely delivery helps avoid stock shortages.
✔ Support From a Dedicated Team
Assistance in product selection & sizing.
Who Should Buy from Pattu Mart?
Pattu Mart is ideal for:
✔ Online resellers (Instagram/Facebook sellers)
✔ Boutique owners
✔ Retail shops
✔ Small wholesalers
✔ Dropshippers
✔ Market stall sellers
Whether you want monthly purchasing or festival-based purchasing, Pattu Mart offers great resale opportunities.
👉 Wholesale collections available at: www.pattumart.in
Top FAQs
1. What percentage is the wholesale discount?
Wholesale prices are usually 30% to 60% lower compared to retail prices.
2. Can anyone buy wholesale?
Yes, anyone can purchase wholesale if the intention is to resell or use it for business purposes.
3. Can wholesale be resold easily?
Yes. Categories like clothing, beauty products, footwear, and accessories sell very easily in retail.
4. What is the difference between a distributor and a wholesaler?
A distributor generally supplies specific brands or categories, whereas a wholesaler buys different products and sells them to multiple businesses.
5. Is wholesale more profitable?
Yes. Wholesale pricing helps businesses earn higher margins because the cost per piece is significantly lower when purchased in bulk.
Conclusion
Wholesale acts as the backbone of retail businesses, ensuring consistent supply, better pricing, and profitable growth. Whether you are starting a boutique, setting up a kids clothing shop, running a small retail outlet, or managing an online selling page, sourcing products in bulk provides a significant advantage. It allows businesses to maintain attractive price points, expand product categories, and operate with better margins.
Today, digital wholesale platforms have made purchasing easier, faster, and more accessible than traditional market visits. Among these, Pattu Mart stands out as a reliable sourcing partner for kidswear businesses. With affordable wholesale pricing, fresh and trendy collections, and smooth ordering and delivery support, it helps resellers and retailers maintain steady stock without hassle.
For anyone planning to build or scale a kids clothing business, choosing the right wholesale partner is a key step. With efficient supply, competitive rates, and premium products, wholesale sourcing empowers businesses to grow sustainably and profitably.