SS1: COMMERCE - 1ST TERM
Introduction to Commerce | Week 13 Topics|1 Quiz
E-Commerce | Week 21 Topic|1 Quiz
History of Commerce | Week 33 Topics|1 Quiz
Occupation I | Week 41 Topic
Occupation II | Week 53 Topics|1 Quiz
Production, Division of Labour, Specialization & Exchange I | Week 63 Topics
Production, Division of Labour, Specialization & Exchange II | Week 72 Topics|1 Quiz
Home Trade | Week 86 Topics
Small Scale Retailing | Week 96 Topics
Large Scale Retailing | Week 109 Topics|1 Quiz
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Characteristics and Functions of Retail Trade
Definition of a Retailer:
A retailer is a trader (person or business) that buys goods in small quantities from the wholesaler and sells them in small units or bits to the final consumers.
A retailer is one of the middlemen essential to the chain of distribution of goods.
Characteristics of Retail Trade:
1. Little Capital: The amount of money required for small-scale retailing is small.
2. Few Staff Required: The number of workers, required for business is small since the business itself is small.
3. Consumer Goods: Small retailers usually deal in consumer goods.
4. Assorted Goods/Varieties of Goods: The retailer buys and sells varieties of products.
5. Consumers Friendly: The retailers deal mostly with consumer goods which they bring nearer to the consumers’ doorstep.
6. Business Locations are Close to Consumers: Business locations of retailers are always planned to be very close to the consumers for easy accessibility.
7. The retailer sells goods in bits or in units.
8. Retailer Represents the “Last Link” in the Chain of Distribution: The retailer sells to the final consumer. The word “link” means connection so the retailer is the last connection, not the consumer because the consumer is the final receiver.
Functions of Retailers:
1. After-sales Services: Retailers provide after-sales services to consumers, including maintenance, installation, repairs, etc.
2. Supplies Information to the Wholesaler/Manufacturer: Retailers deal directly with the final consumer therefore they provide valuable information about the product or service which is made available to the wholesaler and manufacturer. Manufacturers can use this information to improve the overall quality of their products and wholesalers can decide to increase their bulk supply of products that are in greater demand.
3. Grants Credit Facilities to Consumers: Consumers can buy goods from retailers and pay at a later date.
4. Gives Advice to Consumers: Retailers can advise consumers on the use, quality, performance and specifications of products.