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A retailer is a business that sells merchandise in small quantities directly to consumers. In the U.S. Census Bureau’s wording, retailers are “businesses that sell goods in small quantities directly to consumers.” Retail is normally the final distribution step: the retailer buys or obtains products, offers them to shoppers, completes the sale and may provide services such as installation or repair.
What does a retailer do?
Retailers connect products with the people who will use them. They select an assortment, display or present it for sale, set or communicate prices, process orders and payments, arrange delivery or pickup, and handle customer service. Retail trade generally sells merchandise without transforming it. Services that are incidental to the sale—such as installation, maintenance or repair—can still be part of a retail operation.
The customer is usually the final consumer rather than another business buying inventory for resale. A retailer may sell one item, a small basket of groceries or another consumer-sized quantity instead of the larger lots commonly associated with wholesale distribution.
Store and nonstore retailers
The U.S. Census Bureau’s main structural distinction is whether sales are made through a fixed selling location or through a nonstore method.
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| Type | How customers buy | Typical examples |
|---|---|---|
| Store retailer | A fixed point-of-sale location designed to attract walk-in customers, with displays, staff and advertising. | Grocery, clothing, department, hardware, furniture, electronics, pharmacy, office-supply and sporting-goods stores. |
| Nonstore retailer | Orders or sales made without a conventional permanent shop. | Websites and mobile systems, electronic or paper catalogs, door-to-door selling, in-home demonstrations, portable stalls and vending machines. |
One company can use both models. A chain may operate stores while also accepting orders through its website or app; the channel changes how the transaction reaches the customer, not the underlying retail role.
Are online stores retailers?
Yes. An online shop is a retailer when it sells goods directly to consumers. The Census Bureau defines an ecommerce sale by how the order is made: the buyer places an order or negotiates price and terms through the internet, a mobile device, an extranet, an Electronic Data Interchange (EDI) network, email or a comparable online system. Payment does not have to occur online for the transaction to qualify as ecommerce.
For example, a customer can order through a retailer’s website and pay at pickup, or agree on terms electronically and pay later. Both the selling channel and the customer relationship remain retail.
Common examples of retailers
Food and everyday necessities
Supermarkets, convenience stores and specialty food shops sell groceries and household necessities in consumer-sized quantities.
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Apparel, footwear and accessory stores sell finished items to individuals, often through stores, websites or both.
General merchandise and department stores
These retailers combine multiple product categories—such as home goods, clothing, personal care and seasonal merchandise—in one shopping operation.
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Electronics and office supplies
Electronics shops and office-supply retailers sell devices, accessories, paper products and related goods, sometimes adding setup or support.
Home improvement, furniture and hardware
Hardware, building-supply, furniture and home-furnishing retailers sell products for maintenance, construction and living spaces. Delivery, assembly or installation may accompany the merchandise sale.
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Pharmacies retail health and personal-care products, while sporting-goods stores serve customers buying equipment, clothing and accessories for recreation or exercise.
Direct sellers, catalogs and vending operators
Retail does not require a traditional shop. A catalog company, door-to-door representative, portable market stall or vending-machine operator can be a retailer when it sells directly to the public.
Retailer versus wholesaler
The practical difference is the customer and the stage of distribution. A retailer primarily sells to the final consumer in small quantities. A wholesaler generally sells larger quantities to retailers, businesses or other organizations for resale or operational use. A manufacturer can sell to either group, and some companies operate both wholesale and retail channels, so the label depends on the transaction rather than the company name alone.
| Comparison | Retailer | Wholesaler |
|---|---|---|
| Typical buyer | Final consumer | Retailer, business or other organization |
| Usual quantity | Small, consumer-sized quantities | Larger lots or cases |
| Distribution role | Final step before consumer use | Intermediate step supplying downstream buyers |
| Customer experience | Consumer-facing assortment, merchandising and service | Business purchasing, logistics and account terms |
How to compare different retailers
When deciding whether two businesses serve the same retail need, compare the dimensions that affect the shopping experience:
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- Selling channel: physical store, website or app, catalog, direct sales, vending or a combination.
- Merchandise category: food, apparel, electronics, pharmacy, furniture, hardware or general merchandise.
- Customer served: households and individuals, or a mixed consumer-and-business audience.
- Assortment: a narrow specialist range versus a broad general selection.
- Fulfillment: in-store purchase, shipping, curbside collection, pickup or delivery arranged by the seller.
- Pricing: posted prices, discounts, memberships, negotiated terms or a mixture.
- After-sales service: returns, repair, installation, assembly, warranties or technical support.
How large is ecommerce retail in the United States?
The U.S. Census Bureau estimated $316.1 billion in seasonally adjusted retail ecommerce sales in the fourth quarter of 2025. That estimate was not adjusted for price changes and was 1.7% higher than the third quarter of 2025. It is a U.S. quarterly estimate, not a global retail total.
What “retailer” means in context
“Retailer” describes the business’s role in selling to consumers, while terms such as store, online, catalog or direct seller describe its channel. A retailer may own inventory or arrange fulfillment through another party; what matters for the classification is that it makes the consumer-facing sale. Definitions and legal classifications can differ outside the United States, so a country’s statistical or tax rules may use narrower categories.
Frequently Asked Questions
Does a retailer have to own the products it sells?
Not necessarily. Retail classification focuses on the consumer-facing sale; inventory ownership and fulfillment arrangements can vary by business model.
Can a manufacturer also be a retailer?
Yes. A manufacturer becomes a retailer when it sells its products directly to final consumers, whether through its own store, website, catalog or another direct channel.
The Bottom Line
Retailers are the consumer-facing link in distribution: they sell goods in small quantities, through stores or nonstore channels, and may add services that support the sale. Online shops, catalog sellers, direct sellers and vending operators can all be retailers, not only businesses with a traditional storefront.
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