Everything You Need to Know About a Retailer 1

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Who is a Retailer?

A retailer is a trader who buys goods from wholesalers or directly from manufacturers and sells them to the final consumers in small quantities. The retailer is the last link in the chain of distribution. Examples of retailers include shop owners, market traders, supermarkets, kiosks, and online stores. Retailers are important because consumers usually cannot buy goods in large quantities directly from producers or wholesalers.

Characteristics of a Retailer

The main characteristics of a retailer include the following:

1. Sells goods directly to the final consumer: A retailer deals directly with the final consumer, not with other traders. This means the retailer is the last link in the channel of distribution. Consumers buy goods from the retailer for personal or household use, not for resale. Because of this direct contact, retailers understand the needs, tastes, and preferences of consumers better than wholesalers or manufacturers.
2. Sells goods in small quantities: Retailers sell goods in small units that consumers can easily afford and use. Unlike wholesalers who sell in bulk, retailers divide large quantities of goods into smaller portions such as single items, sachets, or small packs. This helps consumers buy exactly what they need at a particular time.
3. Operates with relatively small capital: Most retailers start and run their businesses with small capital compared to wholesalers. They do not need large warehouses or heavy equipment. This makes retailing easier to enter, especially for small business owners. However, large scale retailers like supermarkets may require more capital.
4. Located close to consumers: Retailers usually operate their businesses close to where consumers live or work. This may be in markets, roadside shops, residential areas, or shopping centres. Being close to consumers makes it convenient for buyers to get goods easily and quickly without travelling long distances.
5. Buys goods mainly from wholesalers: Retailers usually buy their goods from wholesalers who supply them in bulk. This saves retailers the stress of dealing directly with manufacturers. In some cases, especially for farm produce or branded goods, retailers may buy directly from producers, but this is not common.
6. Provides personal services to consumers: Retailers often provide personal services such as advice on product use, help in selecting goods, credit facilities, and after sales services. Because of their close relationship with consumers, retailers can build trust and loyalty. These services also help retailers attract and retain customers.

SEE MORE: Modern Trends In Retailing: Trends, Challenges, And Strategies 

Types of Retail Trade: Small-Scale Retail Trade:

These are retailers who operate with small capital and limited stock. Examples include:

Hawkers:

Hawkers are small scale retailers who move from place to place selling goods directly to consumers. They usually sell light and cheap items such as fruits, snacks, drinks, and household items. Hawkers operate with very little capital and do not have permanent shops. Their main advantage is that they bring goods directly to consumers, especially in busy areas, but they face risks such as bad weather, accidents, and harassment.

Kiosk Operators:

Kiosk operators sell goods from small roadside structures or wooden shops. They sell items such as provisions, toiletries, recharge cards, and basic household goods. Kiosks are usually located near residential areas or busy streets, making them convenient for consumers. They operate with small capital and limited stock, and often sell in small quantities.

Market Traders:

Market traders sell goods in open markets or stalls. They may specialize in particular goods such as food items, clothing, grains, or household utensils. Market traders buy their goods from wholesalers or directly from producers and sell to consumers in small quantities. They benefit from large customer traffic but face challenges like poor storage facilities and price fluctuations.

SEE MORE: Smart Fashion: How Technology Is Redefining Fashion Retail 

Corner Shops:

Corner shops are small retail shops located within residential areas. They sell everyday goods such as food items, beverages, toiletries, and stationery. Corner shops provide convenience to consumers because of their proximity and flexible selling methods, including credit sales. However, they usually have limited capital and a narrow range of goods.

Final Thoughts

The retailer is an important link in the channel of distribution. By making goods available to consumers in small quantities, providing useful services, and linking producers with consumers, retailers help to ensure that goods reach the right people at the right place and time. Understanding the role of the retailer helps students appreciate how goods move from producers to consumers in an economy.

Tags

Distribution, Channels of distribution, Retailer, Retail trade, Final consumer, Wholesaler, Manufacturer, Breaking bulk, small scale retailing, Hawkers, Kiosks, Market traders

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