consumer’s wants are satisfied smoothly and efficiently by retailers ”. According to Cundiff and Still “ a retailer is a merchant or occasionally an agent whose main business is selling directly to the ultimate consumers ”. A retailer has been defined as “a trading intermediary engaged in the distribution of goods to the ultimate consumer”. Commerce - - .
. PM . Characteristics of Retailers Following are the characteristics of retail traders . Retailer generally involves dealing in a variety of items.
A retailer makes purchases from producers or wholesalers in bulk for sale to the end consumers in small quantities. . Retail trade is normally carried on in or near the main market area. .
Generally, retailers involve buying on credit from wholesalers and selling for cash to consumers. . A retailer has indirect relation with the manufacturer (through wholesalers) but a direct link with the consumers. .
Distinction Between Wholesaler and Retailer Link: A wholesaler serves as a link between producers and retailers. On the other hand, a retailer provides a link between wholesalers and consumers. Wholesaler is the first link, whereas retailer is the last link in the chain of distribution of goods. Scale of Operations: A wholesaler carries on business on a large scale and requires huge capital.
A retailer, on the other hand, deals generally on a small scale and capital invested in retail trade is relatively small. Range of Goods: A wholesaler generally deals in one commodity. But a retailer deals in a large variety goods and caters to the diverse needs of his end customers. Dealings: A wholesaler generally sells goods to retailers on credit.
But a retailer usually sells goods to end consumers on cash basis. Purpose of Selling: A wholesaler sells goods for resale. On the other hand, a retailer sells goods for ultimate consumption or use. Source of Supply: A wholesaler buys goods from manufacturers and their agents in large quantities.
On the other hand, a retailer generally buys goods from wholesalers and their agents in small quantities. Location: A wholesaler operates