Retailer Definition, Importance, Example & Overview

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Definition: 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. Retailers 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. Retailers purchase products from manufacturers or from wholesalers, who keep the products in warehouses as storage. Retailers 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: Retailer needs to purchase different variety of goods depending on the customer base and needs to stock them safely before selling

2. Influencing consumers and Selling: Retailer is 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: Retailers 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: Retailers 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.

Hence, this concludes the definition of Retailer along with its overview.

Browse the definition and meaning of more terms similar to Retailer. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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