Retailers: Functions and Services Provided by Retailers | Management (2024)

Retailers: Functions and Services Provided by Retailers!

Functions performed by retailers:

(1) Buying and Assembling:

A retailer deals in different variety of goods which he purchases from different wholesalers for selling to the consumers.

He tries to locate best and economical source of the supply of goods.

(2) Warehousing or Storing:

After assembly of goods from different suppliers, the retailers preserve them in stores and supply these goods to the consumers as and when required by them. The goods are kept as reserve stocks in order to ensure uninterrupted supply to the consumers.

(3) Selling:

The end objective of the retailer is to sell the goods to consumers. He undertakes various methods to sell goods to the ultimate consumers.

(4) Credit Facilities:

He caters to the needs of the customers even by supplying them goods on credit. He bears the risk of bad debts on account of non-payment of amount by the customers.

(5) Risk Bearing:

A retailer has to bear different type of risks in relation to goods. While in stores, goods are exposed to various risks like deterioration in quality, spoilage and perishability etc. The products are confronted to natural risks viz; fire, flood, earthquake and other natural calamities. Other type of risks like change in customer’s tastes also adversely affects the sales.

(6) Grading and Packing:

The retailer grades the goods which are left ungraded by the manufacturers and the wholesalers. He packs the goods in small packages and containers for the convenience of the customers.

(7) Collection and Supply of Market Information:

The retailers are in direct touch with the consumers. They gather invaluable information with regard to likes dislikes tastes and demands of the consumers and pass on this information to the wholesalers and the producers which are very helpful to them.

(8) Helps In Introducing New Products:

Without the services of retailers, new products cannot be introduced properly in the market. This is so because a retailer has a direct link with the consumer. He can explain nicely about the utility and the characteristics of a new product to the customer.

(9) Window Display and Advertising:

The retailer displays the products in show windows in order to attract the customers. This leads to immense publicity for the product.

Services Performed By Retailers:

Retailers provide important services to both the wholesalers and the consumers.

These can be explained as under:

(I) Services To Wholesalers:

(a) They supply invaluable information with regard to tastes, preferences, fashions and demands of the customers to the wholesalers who in turn transmit the same to the producers which is of immense utility to them.

(b) By taking over the function of retailing from the wholesalers and manufacturers, retailer’s relive them from selling goods in small quantities to the consumers.

(c) Many retailers usually place orders in advance with the wholesalers which is very helpful in planning the purchases of the wholesalers.

(d) Sometimes retailers make advance payments for the goods to be received from the wholesalers. In this manner, they help in financing the wholesale trade.

(e) Without the services of the retailers a new product cannot be introduced in the market supplied to him by the wholesalers.

(II) Services to Consumers:

(a) The retailers assemble variety to produces from the wholesaler and place them at the doorstep of the consumers and provide them a convenience of choice.

(b) They provide credit facilities to the consumers thereby helping them in times of difficulty.

(c) They extend personalised service to the consumers and try to give them maximum satisfaction.

(d) They introduce new products to the consumers and also guide them as to their uses.

(e) They extend free home delivery and after sales service to the consumers.

(f) They allow cash discount to the consumers on the products sold.

(g) They buy and stock products best suited to the consumers.

(h) They give valuable advice regarding the use and maintenance of the products delivered by them.

(i) They cater to the needs of every type of consumer by keeping in view their paying capacity.

(j) They supply fresh products to the consumers.

(k) They usually take back the goods which do not suit to the consumers and replace them.