Retail and Wholesaling Services Overview

Services Rendered by Retailers

• Retailers introduce new products to the market.
• They promote new products.
• Retailers provide information on market trends.

Services Rendered by Wholesalers

• Wholesalers distribute goods from storage to consumers.
• They give market information and insights to consumers.
• They promote wholesale activities.

Services Rendered to Consumers

• Retailers provide goods in quantities needed.
• Retailers offer credit sales.
• Retailers introduce new products and offer instructions when needed.
• Retailers provide various goods to meet customer needs.
• Retailers provide transport and online payment methods.

Intermediaries (Middlemen)

• Intermediaries are people in the middle of the process of goods being delivered to the consumer.
• Intermediaries include agents, wholesalers, and retailers.
• They provide services.

Advantages of Intermediaries

• Variety of products from different manufacturers.
• Goods delivered to correct locations on time.
• Provide market information.
• Simplify exchange process.
• Introduce new products.

Disadvantages of Intermediaries

• Possibility of shortages of essential goods in the market
• Unnecessary delays
• Increased prices of goods

Agents

• Agents work on behalf of a principal.
• Agent's responsibilities are based on the principal's instructions, or wishes.
• Agents gain commissions for their work.

Commission Agents

• Purchase and sell on behalf of their principal for benefits.
• Act reasonably.
• Receive a commission.

Brokers

• A broker sets up a transaction between buyers and sellers.
• A broker works with both sides without ownership of the product.
• Receives commission.

Factors

• Factors who purchase goods in their own name but hold ownership.
• They can sell, transfer goods in their own name
• Gain profit from the process.

Del Credere Agents

• Guarantees credit given to customers, buyer
• Responsibility is with the agent who guarantees.
• Ensure customers pay for their product.

Auctioneers

• Auctioneers bring buyers and sellers together in a specific location.
• Auctioneers find the highest bidder at the auction.

Trade

• Trade is the exchange of goods and services for a consideration.
• Trade occurs between buyers and sellers.

Classification of Trade

• Home Trade: Goods are exchanged within the same country, domestically.
• Foreign Trade: Trade that occurs between two or more countries; export and import.
• Domestic/Local trade: Products are exchanged within a single country.
• International/External Trade/Foreign Trade: Exchange of products between 2 or more countries.
• Retail Trade: Selling goods to end consumers.
• Wholesale Trade: Selling goods to businesses. (for resale purposes), that distribute goods to retailers.
• Import Trade: Buying goods from another country.
• Export Trade: Selling goods to another country.

Retail Trade Characteristics

• Selling goods and services for final consumption.
• Delivering goods in the required quantity.
• Providing various goods for customers.
• Maintaining a strong relationship with customers.
• Selling goods on credit basis.

Explore the essential roles played by retailers and wholesalers in product distribution. This quiz covers the various services they render to both consumers and manufacturers, and the advantages of intermediaries in the market. Test your knowledge on market trends and the logistics of retail and wholesale operations.