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Services to Retailers

The services received by the retailers are shown below:
  1. Availability of Goods: Retailers are suppose to maintain adequate stock of different commodities so that they are able to offer variety to the buyers. The wholesale merchants make the goods of various producers readily available to the retailers and thus this relieves the retailers from the work of collecting commodities from several manufacturers and keeping big inventory of the same.
  2. Marketing Support: The wholesale merchants carry out different marketing functions and give support to the retailers. They make advertisements and other sales promotional activities to induce buyers to buy their products. Thus this helps the retailers as it keeps increasing the demand for various new products.
  3. Grant of Credit: The wholesale merchants normally give credit facilities to the regular purchasers they have. This makes the retailers to handle their business with comparatively small amount of working capital.
  4. Specialized Knowledge: The wholesale merchants specialize in a single line of products and know the status of the market and pass on this knowledge to the retailers. They notify the retailers about the new items, their uses, quality, prices, etc. and also advise on the decor of the retail outlet, allocation of shelf space and demonstration of certain products.
  5. Risk Sharing: The wholesale merchants buy in bulk and sell in relatively less lots to the retailers. Being able to handle with purchase of merchandise in smaller lots, retailers can avoid the risk of storage, pilferage, obsolescence, reduction in prices and demand fluctuations in respect of the additional goods that they would have to buy in case the services of wholesalers are not available.

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