A retailer also known as a merchant is a person or an entity that sells goods such as clothing, groceries, cars, and hardware products directly to consumers with the help of different distribution channels with the aim of earning profits to a large extent. In this article, we will learn about four characteristics used to classify retailers, the retailers and types of retailers, the most important characteristic all retailers share, and four major classifications of retailers.
1. What do You mean by Retail Business?
Retail business can be defined as the selling of goods, items and services in small quantities to consumers either online or in stores. Examples of retail businesses can be Grocery Stores, Drug stores and Clothing Stores.
Retail businesses are a great advantage to consumers as they fulfil the daily needs of customers providing them with a wide variety of goods and services. (See Who receives the goods and services produced?)
2. What is Retailer and Types of Retailers?
Retailers are entities that buy goods from wholesalers, manufacturers and distributors and then resell them to consumers. They sell goods to customers at a marked price which, in this way, the retailers actually gain profit.
Types of Retailers are:
- Brick and Mortar refers to Physical Buildings.
- Special Events such as fairs, concerts, etc
- Catalogues as in business are conducted through prints and online catalogues.
- Pop up as in a temporary brick-and-mortar model, popular during the holiday season.
3. What are the Characteristics that define Retailers?
The characteristics that define retailers are:
- A retailer acts as a link between a consumer and a wholesaler and thus is the last mediator in the process of distribution.
- A retailer brings in a large number of goods from a wholesaler and sells them to customers in small quantities.
- A retailer usually maintains personal contact with his daily customers.
- A retailer does a proper display of his shop to attract consumers.
- Retailers usually emphasize advertisements.
- Retailers deal with different kinds of merchandise. They are also called General Merchants.
- There are two kinds of retailers: small-scale retailers and large-scale retailers.
4. What is the Most Important Characteristic all Retailers share?
The most important characteristic all retailers share is that they should make their customers happy and satisfied by providing the right quality products. Everything in a retail business must revolve around the customer and his needs. Must read How can You Compare Producer Vs Consumer?
5. How can You classify Retailers?
Before we categorize four characteristics used to classify retailers, let’s classify the retailers as:
General Merchandise Retailer:
- Discount Stores
- Speciality Stores
- Category Specialist
- Off Price Retailers
- Value Retailers
Non-Store Retail Format:
- Electronic Retailing
- Catalogue Retailing
- Direct Selling
- Television Shopping
- Vending Machine
- Services Retailing
6. What are the Four Characteristics used to classify Retailers?
The four characteristics used to classify retailers are:
- The targeted customers
- The size of the store
- Location of store
- The relative prices they charge
7. What are the Four Major Classifications of Retailers?
The four major classifications of retailers are:
- Department Stores
- Online Retailers
- Speciality Stores
8. What Four Elements make up the Retailing Mix?
The four elements that make up the retailing mix are:
9. What are the Four Functions performed by Retailers?
The four functions performed by retailers are:
- They buy new products and stock them according to the needs of the customers.
- They allow cash discounts to customers on the sold products.
- They provide free home delivery and services to customers.
- They introduce new and quality products to their customers and guide them as to how to use them.
Hence we can say that retailers maintain a balance between the consumers and the wholesalers by improving their business and knowing the market right from the scratch. Hope you got some idea about the retail business and the four characteristics used to classify retailers. Check out What is Empowered Consumerism?