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Chapter: 11th Commerce : Chapter 23 : Channels of Distribution

Services Rendered by Retailers

The following are the services rendered by the retailers.

Services Rendered by Retailers

The following are the services rendered by the retailers.


Services to Manufacturers and Wholesalers

Retailers provide the following services to manufacturers and wholesalers.

1.        Help in Distribution: Retailers relieve the manufacturers and wholesalers of the burden of collecting and executing  a large number of small orders from various consumers.

2.        Market Information: Retailer supply valuable information to wholesalers about changes in tastes, preferences, fashion etc. of consumers

3.        Large Scale Operation: The manufacturers and wholesalers are freed from the trouble of making individual sales to consumers in small quantities. This enables them to operate on, at relatively large scale and thereby fully concentrate on their other activities

4.        Help in Promotion: Retailers participate in the promotional activities carried by manufacturers and wholesalers such as short time offers, coupons, free gifts, sales contests, etc. Retailers help in promoting the sale of the products.

5.        Personal Attention: The retailer is able to provide more personal attention to  his customers than the wholesaler is, He gives special services on the spot when the articles require minor repairs.


Services to Consumers

A retailer provides the following services to consumers.

1.        Regular Supply of Goods: Retailers maintain a ready stock of various products of  different  manufacturers  for sale to consumers. This enables the buyers to buy products as and when needed.

2.        New Products Information: The retailers provide important information about the new arrival of products through their personal. Selling efforts and effective display of products.

3.        Credit Facilities: Sometimes retailers provide credit facilities to their customers and enable them to increase their level of consumption.

4.        Wide Selection: Retailers generally keep stock of a variety of products of different manufacturers. This enables the consumers to make their choice out of a wide selection of goods.

5.        Miscellaneous Services

·           Retailers provide free door delivery services to the customers.

·           They provide after sale service to customers.

·           They allow cash discounts on their sales.


Services to the Government

1. Payment of Taxes

Retailers collect General Service Taxes and pay it to the Government which leads to increase in national income.

2. Helps in Improve the Standard of Living

Retailers help the society to improve the standard of living of people and contribute to economic development of a country.

3. Implementation of Government Policies and Acts

Retailers implement the government policies and enforcing the acts such as prohibition of tobacco products, prohibition of child labour, prohibition of adulteration considering common interest.


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11th Commerce : Chapter 23 : Channels of Distribution : Services Rendered by Retailers |

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