In marketing, retailing includes all the activities directly related to selling goods or services to consumers for personal or non-business use.
A retailer is a merchant or occasionally an agent, whose main business is selling directly to ultimate consumers.
Nature and Characteristics of Retailing
Following are the nature and characteristics of retailing:
- A retailer is a link between the wholesaler and the customer. It binds both parties and acts as a bridge between them.
- They sell goods in small quantities to the consumers after purchasing in bulk for wholesalers.
- Retailers deal with different varieties of products.
- They can start a business with lesser capital.
- A retailer is the last component in the channel of distribution that begins with the producer.
- They usually purchase goods on credit from the wholesaler and sell on a cash basis to the consumers.
- Providing maximum service to the consumers and their utmost satisfaction is the sole objective of retail trade.
- Retailers operate both on a small and large scale basis. 15 Functions and Services of Retailers with Examples.
- While most retailing occurs through retail stores, it may be done by any institution.
- Any firm – manufacturer, wholesaler, or retailer that sells something to ultimate consumers for their non-business use, is making a retail sale.
- It does not matter how the product is sold (by a person, mail, telephone, or vending machine) or where it is sold (in-store, on the street, or at the consumer’s home).
- Most people associate the term retailer with the sale of goods rather than services.
- Any institution (such as a manufacturer) may engage in retailing, but a firm engaged primarily in retailing is called a retailer.
- Retailers’ profits are usually a very small fraction of sales.
- Most retail firms are small – either single stores or several stores under common ownership.
- Small retailers can survive and even prosper if they remain flexible and pay careful attention to personally serving customer’s needs.
- Besides product, price, promotion, and customer services, retailers also must make strategic decisions regarding physical facilities. Specific decisions concern the location, design, and layout of the store.
- In retailing, the customer generally initiates the transaction. This differs from marketing on the producer, wholesaler level, where a salesperson will actively pursue customers.
- Retailing has a sense of urgency. People want to buy and use many retail goods immediately.
- Retailing is usually localized.
What is the concept of retailing?
Retailing consists of activities involved in selling directly to ultimate consumers.
Thus, now you know the nature and characteristics of retailing.