Published by MBA Skool Team, Last Updated: May 25, 2020
What is Retailer?
Retailer is the one who sells goods/services directly to consumers for their personal or non-business use. Retailers are business entities which act as an intermediary between producer & consumer of goods. Retailer purchase goods/services from wholesaler or distributor and sells to end customers at marked-up prices. They are intermediaries between consumer and wholesalers (or manufacturers).
Importance of Retailers
Retailers play an indispensable role in creating a market for a product or promoting a product because they are the one who can influence consumer purchasing behavior. They purchase products from manufacturers or from wholesalers, who keep the products in warehouses as storage. They have huge shops, supermarkets etc where they organize all the different type of products which are available for customers to buy. End consumers can directly come to such retail outlets and purchase these goods.
Types of Retailers
Roles of Retailers in Business
Some of the important roles performed by retailers are:
1. Purchasing and Stocking: They need to purchase different variety of goods depending on the customer base and needs to stock them safely before selling
2. Influencing consumers and Selling: They are the one whom consumers believe and hence has the ability to convince consumers to purchase the particular goods and sells the same
3. Assumption of Risk: They need to take several risks like- the risk of storing goods which may deteriorate, risk of change in fashion and hence in consumer buying behavior etc.
4. Calibrating and Packing: Based upon consumer needs, retailers need to calibrate, pack and sell products accordingly
5. Giving credit: They give goods to consumers on credit basis in order to get hold of consumer for longer time
6. Taking customer’s feedback: Retailers are the one who directly interact with end users and hence are in the position to provide genuine feedback to the manufacturer regarding products and its services
7. Advertising: If retailers are given additional discounts in certain products, then they push those products by advertising and releasing certain schemes themselves
Examples of Retailers
Examples of some of the big retailers in the world are Walmart, Carrefour, Tesco, Metro AG, Kroger etc.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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