What do you understand by retail distribution? What is its importance in the Indian economy?


Meaning and Definition of Retailer

Retail distribution means delivery of goods and services to their end consumers. These end consumers do not buy those goods or services to be sold again in some form, but buy them for use. Hence, it is said that the final consumer refers to the sale of goods or services to the householder. Retailers are those traders who buy small quantities of goods from producers or wholesalers and sell them to consumers as per their requirement or demand. Retailers also act as an intermediary in a way that provides their suggestions and services to the producers or wholesalers and consumers, on the basis of which the producers manufacture the goods according to the wishes or preferences of the consumers and achieve success under commercial competition. Huh. The definitions of a retailer are as follows

(1) According to the American Marketing Association, “A retailer is a businessman, or sometimes an agent, whose principal business is to sell directly to end consumers.”

(2) William J. According to Stanton, “A retailer or retail store is a business enterprise that primarily sells to end consumers for non-commercial use. ,

On the basis of the above, it can be said that retailers are those traders who buy small quantities of goods from the producer or wholesaler and sell the goods to the final consumers as per their requirement. Retailers are the last link in the distribution channel. They have direct contact with the customers or consumers. The business of many items used in daily life is done by the retailer.

Characteristics of Retailers

Following are the main characteristics of retail traders (i) Retailers buy goods in small quantities from producers or wholesalers.

(ii) They sell the goods for consumption to the final consumers. (iii) They often trade in many commodities.

(iv) Along with selling the goods to the consumers, they also provide many services, such as home delivery, credit facility, selection of goods etc.

(v) Retailers have direct contact with the end consumers.

(vi) Relatively less capital is required in retailing business.

(vii) More emphasis is given on the location and decoration of the shop.

Services of Retailers

The work or services of a retailer are divided into the following two parts:

(a) Services to Wholesaler The following services are provided by the retailer towards the wholesalers

(1) Management of the sale of goods Retailers make arrangements for the sale of goods, so that the wholesaler gets freedom from the trouble of selling small quantities of goods to the consumers. The retailer buys the goods from the wholesaler and delivers it directly to the consumer.

(2) Knowledge of new goods – Retailers promote or advertise new goods very effectively, because they have direct and direct contact with the consumers.

(3) Freedom from local advertising – Retailers get local advertisements done themselves. This frees the wholesalers from this task and they do not have to spend on advertisement.

(4) Information about the preferences of the buyers – The retailer remains in direct contact with the buyers, so he has complete knowledge about their interests, customs, fashion, habit etc. In this regard, he gives information to the wholesalers and the wholesalers complete the production activities according to the choice of the buyers.

(5) No contact with consumers – The wholesaler does not need to establish contact with the customers, as he leaves his entire work to the retailer. (b) Services to Consumers Retailers provide the following services to consumers

(1) Knowledge of the interest and demand of the customers- Retailers first study the interest and demand of the consumers and provide the goods to the customers according to their interests.

(2) Social Services – Retailers while selling durable goods assure the customers that if there is any defect in the article within a certain time, they will repair it free of cost and after this fixed time repair facilities will be available at reasonable prices.

(3) Proximity – Due to the services of the retailers, the consumers do not need to go far, because the shops of the retailers are near to the consumers.

(4) Convenience in sorting goods – Retailers trade in different types of goods, due to which the facility of sorting goods is given to the customers according to the type of their choice.

(5) Increase in the knowledge of the customers Retailer’s shops provide all the information about the goods and their use to the consumers, which the consumers are not aware of.

(6) Credit Facility- Retailers provide credit facility to their customers i.e. sell goods on credit.

(7) Facility to return the goods – Retailers also provide the facility to the customers that if the goods are not liked, they can return them immediately. This also gives satisfaction to the customers that if they do not like the goods, they will not have to bear the loss, that is, their goods will be returned.

(8) Free consultation – Retailers give free consultation to the customers regarding the goods.

(9) Providing fresh items – Retailers sell more items of daily use. Some such items are included in the items of daily use, which the retailer buys in small quantities so that all the items are easily sold on the same day, such as milk, vegetables etc. Therefore, the retailer provides fresh items to the consumers.

(10) Providing seasonal goods – Retailers provide all the commodities demanded according to the season to the consumers. They have prior knowledge of the demand of the consumers, according to which they make the goods available. According to the season, we also make arrangements for the items to be used in advance.


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