COMMERCE 101.

                                       HOME TRADE.

Hey Guys, New Day New Things and we are here to learn and understand. Let’s get started on our topic.

HOME TRADE is the act of buying and selling goods within a country. It is also known as DOMESTIC or INTERNAL TRADE. In this Home Trade the same currency is used for exchange. Home Trade comprises of:

1.      Retailing.

2.     Wholesaling.

RETAIL TRADE.

Retail Trade is the act of selling goods and services to the final consumer in small quantities. Retailing is the final link in the chain of distribution of goods and services.

The Retailer is a person whose business is to purchase goods from the wholesaler or producer in small quantity, and sell in smaller units directly to the consumer. In order words, A Retailer is any trader who directs his efforts towards selling to the final consumers for the purpose of making profit and finishing the chain of production.

CHARACTERISTICS OF RETAIL TRADE.

1.     Retailer sells in smaller units or quantities.

2.     They stock a wide variety of goods.

3.     They sell directly to the consumers.

4.     Retail Trade involves bringing the goods nearer to the consumers.

5.     They are the final link in the chain of Distribution.

6.     The Business location is open to the general consumers.

FUNCTIONS OF THE RETAILER.

1.     The Retailer buys and stock variety of goods in order to satisfy the different tastes of the consumers.

2.     By selling in units, it saves the consumers the trouble of spending huge amount of money on a particular commodity.

3.     He gives Credit Facilities to consumers or customers (i.e. by allowing the customers to buy goods without immediate payment).

4.     Retailers are in the position to feed both the wholesalers and the producers with information about the market as well as the needs of the consumers.

5.     Retailers ensure that goods are brought to the door step of every consumer.

6.     He advice the consumers on how to use certain goods especially those that require technical knowledge.

           FACTORS TO BE CONSIDERED WHEN SETTING-UP A RETAIL TRADE.

1.     Capital- Before setting up a business, money at hand will determine the type and the size of a business and must be considered first.

2.     Site of the Business- This should be taken into consideration based on the focus of the retailer, which is the consumer. Therefore, He should be located near the consumers.

3.     Terms of Trade- The Retailer should decide whether the business should be conducted on cash or credit basis. Combination of the two should also be considered.

4.     Prices- The Retailer should consider whether his prices will be higher in order to make higher profits at a time or adopt the policy of small profit, quick turnover which may give him more profit.

5.     Source of Supply- The Trader should decide whether to buy directly from the wholesaler or producer which ever suits his purpose.

This concludes our session for today hope you had fun and that you learnt something today? For all your questions pls send a message to-dividiamond@gmail.com, don’t forget to leave your comments on your thoughts and advice.