Retailing is the process of selling goods or services directly to consumers for their own use. It is the final channel of distribution where small quantities of goods are sold directly to the consumer. Retailers purchase goods in large quantities from manufacturers, directly or through a wholesaler, and then sell them to customers in small quantities. Retailers can be any business entity that sells goods to the end user and not for business use or for resale, whether it is a manufacturer, wholesaler or retailer. Retailing can occur through a number of different sales channels, such as physical stores, online stores, or a combination of both.
Some key characteristics of retailing include:
- Small quantities of goods: Unlike manufacturing or wholesale, the number of goods involved in a retail transaction is very less.
- Directly to the consumer: Retail stores are the last channels of distribution where the actual sales to the customer happen.
- Distribution process: Retailing is the distribution process of a retailer getting the goods (either from the manufacturer, wholesaler, or agents) and selling them to the customers for actual use.
There are different types of retailing, including:
- Brick-and-mortar retailing: This type of retailing involves traditional physical stores that customers can visit in person to shop for goods.
- Online retailing: This type of retailing involves purchasing goods online.
- Non-store retailing: This type of retailing involves selling goods through channels other than physical or online stores, such as direct mail, vending machines, or home shopping.
Retailing is an important part of the economy, as it provides a way for manufacturers to get their products to consumers and for consumers to obtain the goods and services they need.
