what are d advantages and disadvantages of a retailer?

what are d advantages and disadvantages of a retailer?

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Answers (4)

mizta smart
1 year ago
The biggest advantage of wholesalers
is that one does not has to do much
marketing as retailer’s orders are fixed
and it is the producer or company
which markets the product and
wholesaler have to supply goods to
retailers. Hence there is no pressure of
achieving a monthly target or doing
any extensive marketing and
wholesaler has to concentrate only on
supplying and up keeping of goods
until retailers take goods from them.
Fixed Margin of Profit
Another benefit of wholesaling is that
wholesaler will get fixed margin of
profit which is usually between 3 to 10
percent and hence one does not has
to worry about profit margin in this
business because you know exactly
the amount of profit you will make if
you sell a particular amount of goods
to retailers.
Bridge the Gap between Producers
and Retailers
Wholesalers act as a bridge between
producers of goods and retailers
because once producers have
produced goods they need to sell it in
order to have adequate working
capital and since retailers cannot buy
goods in bulk quantity due to lack of
funds it is the wholesalers who act as
a bridge by purchasing goods from
producers and giving those goods on
credit to retailers for selling to
consumers of goods.
Disadvantages of Wholesalers
High Capital Requirement
The biggest disadvantage of
wholesalers is that it requires high
capital because when one purchase
product in bulk quantities it does not
get resold immediately to retailers and
hence the wholesaler needs to have
enough capital so that he or she can
maintain enough stock so as provide
supply to the retailers as and when
they come.
Goods on Credit
Another disadvantage of wholesalers
is that one purchases goods in cash
from producers of goods but he or
she has to sell goods on credit to
retailers as retailers usually pay after
15 to 30 days of purchasing goods
from wholesaler and hence wholesaler
is at disadvantage as he or she has to
recover and do follow up with retailers
for repayment of goods taken on
credit by them.
Requires lot of Space
Requirement of space is another factor
which plays spoilsport for wholesaler
because if you have own space than it
is fine but if you have to take space for
rent than it can lead to huge expenses
as storing of goods require large
space and in these times where rates
of commercial rent are very high it can
put a dent in all the profits earned by
the wholesaler.
As one can see from the above that
there are pros as well as cons of
wholesalers any individual thinking of
becoming wholesaler should carefully
read above points and then take the
decision whether to become a
wholesaler or not.
1 year ago
●Specialization and ExpertiseOne of the key benefits of a specialty store is its focus on asingle class of products. This gives owners and employees achance to develop expertise and a reputation for knowledge and selection within the store's defined specialty. A specialty store can carry more goods within its chosen category, drawing enthusiasts who can't find what they want specifically at a general retailer. Specialty stores also become gathering places for enthusiasts, especially if owners organize special events and product demonstrations.
●Lack of Variety
By definition, specialty stores lack variety. While they may sell many different specific products, they all fall into a single category or classification. This means that shoppers are only likely to come to the store when they have interest in the type of products it sells.
This is a contrast to department stores, which can draw customers in with one type of product and expose them to many other types of products while they shop.
Specialty stores can be less convenient than general retailers, driving customers to one-stop options if they are available locally.
Specialty stores have an advantage when it comes to staffing and training. Employees only need to know or learn about one type of merchandise.
For example, a sporting goods store can employ sales staff with backgrounds in team sports and personal fitness.
This provides an advantage over general retailers, whose staff are less likely to know about all of the products available to customers.
A sporting goods store also can recruit employees by advertising in a fitness magazine, targeting people with an interest in a field related to its products.
●Reliance on Market Another drawback for a specialty store is its financial reliance on a single market. While department stores can shift their inventories to accommodate changing trends in consumer buying, specialty stores risk alienating customers if they alter their offerings too much.
For example, a stationary store will see a dip in sales if customers begin using online cards in place of mailed greeting cards.
However, adding office furniture to the store's selection of merchandise would harm its image as a local source for stationary and leave less space for the wide selection of cards that made the store appeal to customers in the first place.
9 months ago
In my opinion
Advantages of a retailer
1: He makes profit by buying in bulk from the manufacturer /wholesaler and selling in bits.
2: lower risk of damage of the inventory.

1. He may suffer bad debts
2: he sells in bits which makes the rate of sales slow..
1 year ago
An advantage of the retail inventory method
is that it does not require a physical
inventory. The retail inventory method only
requires an organization to record the retail
prices of inventory items. If an organization
has multiple locations in different cities and
states, performing a physical inventory can
become a costly and time-consuming
undertaking. By using retail inventory, an
organization can prepare an inventory for a
centralized location. The retail inventory
method also allows the organization to
create an inventory value report for
budgeting or the preparation of financial
On the other hand, the retail inventory
method is only accurate if all pricing across
the board is the same and all pricing
changes occur at the same rate. In most
cases, this is not realistic in retail because of
the many variations that exist in
merchandise pricing. For example,
depreciation, markdowns, product damage
and theft can affect the price of the retail
inventory. For this reason, any calculations
made using the retail inventory method
should serve only as an estimate.
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