Manufacturer vs. Retailer — What's the Difference?

In terms of scale, manufacturers usually operate on a much larger basis, often requiring extensive supply chain management. Retailers usually operate on a smaller scale and are more focused on localized markets, unless they are part of a larger chain. Manufacturers often deal with business-to-business (B2B) transactions, whereas retailers deal with business-to-consumer (B2C) transactions.

The manufacturer's primary concern is producing a high-quality product efficiently and in large volumes. Retailers are more concerned with selling these products and managing inventory levels to meet consumer demand. While a manufacturer's success is largely determined by the efficiency of production processes, a retailer's success often hinges on customer satisfaction and the effectiveness of sales strategies.

In summary, a manufacturer creates products from raw materials in large volumes, often distributing these products through a variety of channels. Retailers take these products and sell them directly to consumers, focusing on sales tactics and customer experience.

A manufacturer is an entity that takes raw materials and converts them into finished goods, ready for sale or distribution. A retailer, on the other hand, is the final stop in the distribution chain, selling goods directly to the end consumer. Manufacturers often operate large facilities, such as factories, and may or may not sell directly to consumers. Retailers are generally focused on customer interaction and are typically found in easily accessible locations like shopping malls.