Why is retailing important

Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.

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Article Sources. Your Privacy Rights. To change or withdraw your consent choices for TheBalance. A major value-providing activity performed by retailers is holding inventory so that the products will be available when consumers want them. Thus, consumers can keep a smaller inventory of products at home because they know local retailers will have the products available when they need more. This activity is particularly important to consumers with limited storage space.

Retailers provide services that make it easier for customers to buy and use products. For example, retailers offer credit so that consumers can have a product now and pay for it later. They display products so that consumers can see and test them before buying.

Some retailers employ salespeople in stores or maintain Web sites to answer questions and provide additional information about products. You are commenting using your WordPress. You are commenting using your Google account. You are commenting using your Twitter account. You are commenting using your Facebook account.

Notify me of new comments via email. In retail stores, retailers get opportunities to interact with customers the ultimate consumers of your products. In addition to this, you can promote products to them and also provide chances to them view and test products before making a purchase decision. In a retail transaction, the goods and services are sold to ultimate or final consumers.

Goods and services sold at this point can be used for various purposes such as for domestic use, household use or for industrial use. Hence, at this point manufacturer can interact with his consumers through retailer and know about their views. The meaning of word retail is to break down the goods in small pieces and reselling them. To do this, the retailer can repack goods in various quantities and shapes so that it is convenient for consumers to choose and carry them to their homes.

Retailer stores are generally set up at locations which are convenient for consumers to reach. A retail store can be of various forms such as it could be a small shop, small store, or a multiplex. Goods can be sold through internet and mobile apps as per the convenience of consumers. Moreover, shopping online is becoming a new trend because of the advancement in technology and courier services. Therefore, more and more companies are taking their business online where customers can view products at the comfort of their home and buy them.

Retailing is an integral part of modern society. People highly depend on retail stores to lead a comfortable life. But in present times trading is replaced by buying and selling goods which makes retail stores an important part of the society.

In many countries, the retail business is one of the biggest contributors to the Gross Domestic Product GDP and its contribution has increased as compared to past and is also increasing by leap and bounds.

Retailing is a driving force of the economy and its ambition is to encourage sustained growth. A retailer purchases goods or products in large quantities from manufacturers or directly through a wholesaler, and then sells smaller quantities to the consumer for a profit.

Retailers participate in the sorting process by collecting an assortment of goods and services from a wide variety of suppliers and offering them for sale. The width and depth of assortment depend upon the individual retailer's strategy. Retailers provide a vital link between producers and ultimate consumers. When consumers purchase goods, retailers must order more goods to replenish their stock. In turn, factories must manufacture the goods for retailers.

The factories then purchase more raw materials to use to manufacture more goods. This is how consumer spending is able to drive much of the economy. The retailer provides useful information across the supply chain. He informs and educates customers about product features and benefits. They provide information to consumers through advertising, displays, and signs and sales personnel.

Marketing research support is given to other channels, members. Retailing in a way is the final stage in marketing channels for consumer products.

He also provides feedback about consumer requirements to the manufacturers and wholesalers which help them in planning production and supply. The retailing industry mobilizes the investment and savings of people, as a small shop can be set up with minimal investment.

They store merchandise, mark prices on it, place items on the selling floor, and otherwise handle products; usually they pay suppliers for items before selling them to final customers.