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Retailing

Schemes of selling

  1. Wholesale

  2. Retail

  3. International trade

Distribution chain

Retailers buy goods directly from the manufacturers (producers) or from a wholesaler (middleman). Wholesalers and retailers are distributors. Retail outlet is the place where customers can purchase goods, for example, a supermarket or department store.

Nowadays many customers are shopping from home: shopping by the Internet, TV shopping channel or mail-orders catalogues is becoming very popular.

Definition

Retailing is the provision of the goods or services to the customer.

Types of retail outlets

Chain store: part of group of shops, all with the same name.

Convenience store: small shop in a residential area and open long hours.

Deep discounter: a supermarket with very low prices.

Department store: very large shop with a wide variety of goods, usually in a town centre.

Drugstore: shop in town centre in the US which sells medicines; you can also have coffee and meals there.

Hypermarket: very large shop with a wide variety of goods, usually in outside a town.

Supermarket: very large shop, selling mainly food.

Direct sales

Mail order: a company send good by post from its warehouse.

Door-to-door sales: an agent for the company sells the product or service to the customer at home.

TV sales: customers see product adverts on the screen and place their orders by phone/internet.

The Internet: electronic shopping from companies’ websites.

Cash and carry: customers can buy from the manufacturer’s warehouse.

Advantages & disadvantages of direct shopping

+

1. You can order at any time of day;

2. Without delivery;

3. Wide variety of goods;

4. Cheap for small business;

5. Saving time;

6. You can order goods from any place.

-

1. Can be more expensive (TV sales);

2. Security problems (Internet);

3. Not human contact;

Advantages & disadvantages of indirect shopping

+

1. You can buy all products in one place;

2. You have human contact with seller;

-

1. Small variety of goods;

2. Out of stock problem;

3. Queues;

4. Crowded;

5. Not enough time.

Customer’s protection and convenience for customer

It’s main thing for Internet orders because:

1. You can lose your money when your order in Internet;

2. You can click the button, but it can violate security or send to unnecessary page;

3. Big variety variants of payment.