When buyers buy a product and sell it to the final customers for their consumption, and not to any supplier or wholesaler, this is known as Retail. The retailers are the mediator between wholesaler and customers. They purchase goods from the wholesaler and sell them to the ultimate customers in small quantity. Retailers offer a wide variety of goods and are in direct communication with a large chain of suppliers, giving them an opportunity to manufacture and develop more sustainable goods.
A retailer does not manufacture any product they sell, but they are the final link in the distribution chain and the one who connects and delivers the goods and services directly to the customers.
Importance of Retailer:
- Provide Assortments- Supermarkets or small Kirana shops sell different product items manufactured by different companies. These places enable and give choices to customers to pick from a vast assortment of goods, sizes, brands, and prices at one location.
- Breaking Bulk Orders- Manufacturers and wholesalers sell the products in bulk to the retailers. The retailers then sell it to the customers in smaller and more useful quantities. This activity of breaking bulk order into tiny amount according to customer’s requirement is known as breaking bulk.
- Holding Inventory- The significant action accomplished by the retailer is maintaining an inventory, so the items are available whenever the customers want. This action allows the customer to buy products in a small quantity as required.
- Providing Services- Retailers implement services that make customers shopping journey favourable. Example, retailers showcase all the products so that the customers can see and buy them. Retail store’s employee salesperson to assist the customers.
Key Points of Retailer:
- It creates a high annual sale and has a huge impact on the economy.
- Creates employment and offers wide varieties of career opportunity.
- Offers widespread categories of products and services.
- Retail service can improve a product’s image.
- Spread information to customers through display, signs, and sales personnel.
The above mentioned is the concept, that is elucidated in detail about ‘What is a Retailer?’ for the Commerce students. To know more, stay tuned to BYJU’S.