A retailer is a final link in the chain of distribution. He links the consumers and wholesalers.

We'll examine the roles that retailers play in relation to wholesalers and customers in this piece.

Functions of the retailer to manufacturers

1. Distribute goods: As one of the middlemen in the chain of production, the retailer ensures that goods are distributed to the final consumers as per their needs.

2. Source of market information: Retailers are very close to the final consumers.

Consequently, they can collect market information such as product feed, consumer tastes and fashion from the consumer.

After collecting this information, they relay it to the wholesaler, who then relays it to the manufacturers.

Manufacturers use this market information to improve the quality of their goods.

3. Bears risk: The retailer bears so many risks.

First, he bears the risk of defaulting payment by consumers when there are offer credit sales.

Secondly, he also bears the risk of spoilage products and services while in his possession or in transit.

Without the retailer, all of these risks would have been on the manufacturer.

4. Credit facilities: A retailer may pay the wholesaler in advance for goods and services.

In doing so, he aids the wholesaler in financing his business.

5. Introduce new product: As the closest to the consumer, retailers are best placed to introduce new products to them

With the help of the retailers, the producer can introduce new products to the consumers.

The retailer achieves this by explaining the benefits and characteristics of new products to the consumers

Functions of the retailer to consumers

1. Credit facilities: Retailers provide credit facilities to the consumers they trust.

A retailer's decision on how much credit to offer a customer will be heavily influenced by that customer's creditworthiness.

2. Advises the customer: The retailer offers suggestions on what products a customer should buy based on his needs and budget.

Additionally, he instructs the customer on how to use specific products and services

3. Create place utility: The retailer provides place utility by delivering goods to the customers' doorstep or other locations that may be more convenient for his customers

4. Offers personalized services: Because the retailers are very familiar with their customers, they can provide personalized services to each of their customers.

He might offer after-sale services like installation to selected customers.

He may extend larger credit facilities to some others than he typically does for customers

He can also offer to deliver goods to the workplace of the consumers to enhance satisfaction.

Hence, the retailer provides personalized services based on the preferences of the consumer.

5. Break-bulk: Retailers sell to customers in small quantities, enabling them to buy products and services they otherwise would not have been able to afford if they had been sold in bulk by wholesalers.


6. Make goods available to consumers: Retailers typically stock products from various brands, not just one brand

A retailer shop usually has various brands of a product type in its store and supply to consumer when he demands it.

Customers have a greater selection of goods to pick from thanks to the availability of numerous products from various brands in the retailer stores.

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