Functions of retailers

Business studies study module

These can be discussed as services rendered to consumers, wholesalers and producers

Services Rendered to consumers

  • Offers credit facilities: Retailers are in close contact with the consumers and some may give them credit facilities
  • After-sales services: Retailers who sell technical goods e.g. cars, electronics e.t.c may offer after sale services to consumers e.g. transport, installation repair e.t.c
  • Provision of variety of goods: Retailers stock a wide variety of goods from different wholesalers and manufactures enabling the consumers to have a wide choice.
  • Advising consumers: Retailers may offer advice to consumers on choice and use of products
  • Availing needed goods: Retailers make goods available to consumers at the right time and place
  • Breaking bulk: Retailers sell goods to consumers in convenient quantities
  • Accumulating bulk
  • Stabilizing prices: By ensuring that goods are continuously available to consumers

Services Rendered to wholesalers

  • Retailers store goods and relieve the wholesalers the burden of storing goods and the storage costs
  • They relieve the wholesalers the burden of transportation
  • Retailers advice wholesalers on market trends(on consumers demand)and give valuable information
  • They help in distribution of goods to the consumers
  • They help in breaking bulk on behalf of the wholesaler
  • They finance wholesalers to continue with their operations through paying for the goods
  • They relieve the wholesaler of some risks that arise from the storage of goods such as theft, fire and accidents.

Services Rendered to producers

  • Through wholesalers retailers provide very vital information to manufactures about market demand
  • They advertise goods on behalf of producers
  • They sell and market goods to consumers. This relieves the manufactures the task and risk of retailing
  • They store goods on behalf of the producers
  • They break bulk on behalf of producers to consumers
  • They finance producers buying and paying cash



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