Retail and Wholesale Trade: notes

Chain of distribution

Producer, then wholesaler, then retailer, then consumer.

• Wholesaler: buys in bulk from producers and sells in smaller lots to retailers. Gives credit and storage.
• Retailer: sells to the final consumer in small amounts, and gives advice and convenience.

Types of retailer

• Supermarket: self service, many goods under one roof.
• Tuckshop and vendor: small, close to home, often sell on credit.
• E-commerce: buying and selling online.

Common mistake

Cutting out the wholesaler lowers the price only if the producer or retailer does the wholesaler's job.