Product distribution and sales. Retail trade is... What are retail and retailers? Wholesale and retail trade - the difference

Wholesale trade is any activity of selling goods or services to those who purchase them for resale or professional use. A wholesaler is a company that purchases significant quantities of goods from various manufacturers and organizes their movement into retail trade or direct sale to the consumer. Wholesalers are different from retailers. First, the wholesaler pays less attention to the incentives, atmosphere and location of his sales establishment, because... it deals primarily with professional clients rather than end consumers. Secondly, wholesale transactions are larger in volume than retail transactions, and the trading area of ​​a wholesaler is usually larger than that of a retailer. Third, when it comes to law and taxes, the government approaches wholesalers and retailers from different perspectives.

It is beneficial for manufacturing firms to use the services of wholesalers, because even if they have sufficient capital, it is preferable for them to direct funds to the development of production rather than to organizing wholesale trade. And in turn, it is beneficial for wholesalers to maintain good relations with all companies, if only on the grounds that this provides them with the most important weapon for wholesale efficiency - a wide range, a wide selection of goods. The fundamental difference between a wholesaler and a company's sales service is that he receives income and profit from the sale of goods from any company, and not just his own. But the tastes and preferences of consumers are different. Accordingly, the greater the selection of goods a wholesaler has, the higher his income and profit.

Wholesalers are under intense pressure to offer a full range and maintain sufficient inventory for immediate delivery. But this could have a negative impact on profits. Today, wholesalers select only the most profitable product groups for themselves. Preventing “internal” competition, wholesalers prefer, on the one hand, to refuse product advertising, and on the other hand, they retain the traditional network of traveling salesmen who maintain personal contacts with the company’s clientele.

Almost all wholesale transactions use credit. For example, company A has the same good product as company B. Both have a good reputation, high readiness to service the product, and equally well-established sales connections. Who will the wholesaler choose when all odds are equal? Of course, to the company that will offer him a more reasonable price for a similar product. Well, if everything is the same here, then whoever gives the buyer the best credit terms will win. The opposite situation, of course, is also not uncommon in business practice. Start-up but promising industrial firms often use credit support from large trading companies.

Wholesale trading companies usually purchase goods in large quantities from manufacturers and then resell them to industrial enterprises or the service sector (restaurants, shops). Thus, the wholesaler acts as an intermediary. Quite often the question arises: why is this intermediate link in the circulation of goods needed?

A wholesaler, on the one hand, helps manufacturers regulate the sale of products, speeding up payment for the cost of goods, and on the other hand, provides an important service to retailers, relieving them of the difficulties associated with creating inventory; from the need to make significant investments and knowledge related to product quality, supplier selection and market functioning at home and abroad.

Warehousing of goods is one of the characteristic aspects of a wholesaler's activity. This aspect of activity finds its material embodiment in the form of a warehouse, a room in which goods arriving from enterprises are placed, divided into batches, packaged and only then delivered to consumers. A wholesaler regulates the supply of goods, synchronizing the production and consumption of material goods. In addition, he assumes financial obligations associated with the immobilization of funds invested in the creation of inventory.

A wholesaler supplies retailers and small sellers with goods in a form that meets their needs. This means that he must split goods into batches convenient for customers, form an assortment and ensure delivery of products at a convenient time. Goods are released from the warehouse in fairly small batches in accordance with the possibilities of sales to consumers in a very short time, which facilitates the financial situation of customers. The retailer requests a very diverse set of products, which may number several thousand items.

The activity of a wholesaler makes the transportation of products easier and less burdensome. The number of shipments of goods and related operations is reduced when goods pass through a wholesale warehouse

The need for the services of wholesalers in the non-food sector arises due to the “dispersal” of demand from retailers who need small quantities of a variety of goods. Hence, the main functions of the wholesaler are warehousing and forming an assortment (haberdashery, mosquito, hardware, pharmacy and other goods)

Therefore, it is especially important to ensure the exchange of reliable information between manufacturers and retailers, creating better conditions for the operation of retailers and other industries that are clients of wholesalers.

An intermediary in the field of wholesale trade of industrial and technical products can perform the following functions.

1. Sales and promotion of goods

Sales promotion, as a branch of marketing, is carried out in various forms. So, for example, we can talk about a targeted advertising campaign, holding various events promoting the quality characteristics of products, their advantages compared to other similar types of materials or products.

2. Purchasing and creating a product range for the consumer enterprise

At the buyer's request, the intermediary can:

• - perform the functions of studying market conditions, quoting market prices for the necessary products;
• - identify rational purchasing options in terms of the amount of transportation and procurement costs, reliability of the supplier and the quality of the required resources.

In addition, intermediary services may include:

• - analysis of the assortment of required material resources;
• - compiling a list of potential materials or substitute products in case of shortages for individual items of assortment needs.

Here you can also obtain information about new types of material resources and their sources.

3. Splitting large quantities of goods into smaller ones

A commercial intermediary can create inventories in its warehouses and, thus, purchasing goods in large quantities, then sell them in quantities convenient for the buyer. In this case, the products sold can be brought to a high degree of technological readiness for use in industrial consumption.

4. Warehousing

A commercial intermediary maintains inventory in specialized warehouses, ensuring their safety. Therefore, the buyer can transfer the material resources received to him for safekeeping or rent the warehouse space necessary for storing the resources.

• 5. Transportation (delivery) of goods from mainline transport
• 6. Financial participation in purchase and sale settlements, responsible storage of consignments and acceptance of the risk of the owner of the goods
• 7. Providing commercial information and consulting

Intermediary enterprises trading in the wholesale trade of goods for industrial and technical purposes, depending on the nature of the functions performed, are usually divided into several groups:

• - independent wholesale intermediaries (distributors);
• - organizations of agents and brokers;
• - wholesale branches of industrial enterprises.

Product distribution- a systematic process of bringing goods from enterprises producing goods to consumers.

Product distribution- this is the activity of planning, implementing and monitoring the organization of contacts between sellers and buyers, the physical movement of materials and finished products from their places of origin to their places of use.

Goods distribution is a complex organizational, economic and material (technological) process, since at each stage numerous means and tools are used (trade buildings, structures, trade and technological equipment, vehicles, etc.), and many people are involved in its implementation of people. The basis of the organizational and economic side is commercial activity carried out by the units participating in it - wholesale and retail trade enterprises and includes various operations and processes.

There are 2 forms of product distribution:

1) Transit - goods enter the trading network directly from trading enterprises;

2) Warehouse - through one or more intermediary links.

A distribution channel is a set of firms or individuals who take over or help sell or transfer ownership of a product or service to someone on its way from producer to consumer.

Concept "sales" in the literature it is used in two aspects: in a broad sense - as a holistic process of bringing a product from the manufacturer to the final consumer (transportation, warehousing, storage, processing, promotion to wholesale and retail chains, pre-sale preparation and actual sale of the product), and in a narrow sense - like the actual sale.

In other words, sales is a system of all activities that are carried out after products leave the enterprise gates. How do the concepts of “marketing” and “selling” relate? As follows from the definition, sales is a whole system of processes, and sales completes the process of marketing a product. Selling is a personal communication between the seller and the buyer, aimed at making a profit from sales and requiring knowledge, skills and a certain level of trading competencies.

The product distribution system covers a significant area of ​​the enterprise’s economic activity, starting from the warehouse of finished products to the points of sale of manufactured goods.

Traditional distribution system(Fig. 1) consists of an independent manufacturer, one or more wholesalers and one or more retailers and a consumer. All participants in such a distribution system find each other on the free market, do not bind themselves to long-term obligations, are independent and not controlled by other participants in market relations, pursue the goal of maximizing profits, primarily in their section of the distribution system, and are not interested in issues of optimizing profits in the distribution system generally.

Rice. 1. Traditional sales system:

R - market, free market relations.

Let's consider what are the qualitative differences between existing marketing distribution systems, how these systems cooperate, interact, conflict, and compete with each other.

So-called conventional(symbiotic) The marketing channel (MCC) operates on the principle of symbiosis and includes independent manufacturers, wholesalers (or sellers) and retailers. Each of them goes about their own business, trying to maximize their profits, even if this does not maximize the profits of the system as a whole. None of the partners in the KMC has the ability to have complete or even significant control over the rest of its members. Their interaction is essentially fragmented, the zones of agreement are limited, figuratively speaking, by “arm’s length”, and the agreements relate mainly to sales volumes, otherwise their behavior is autonomous.

Vertical Marketing System (VMS)- a relatively new form of distribution channels, operates as a single system, since it includes a manufacturer, one or more wholesalers and one or more retailers pursuing common goals and interests; one of the participants plays a leading role. Such a sales system and the organization of relationships between a manufacturing enterprise and sales entities is possible and effective on the basis of the high reputation of its brand, its high authority as a business partner and evidence of the effectiveness of its coordinating activities as a production and commercial entity of the system.

Vertical systems can be of three types (Fig. 2):

- corporate(within the framework of a single organizational structure of one company, united by ownership status);

- negotiable(within the framework of contractual relations and coordinating programs), which in turn are divided into voluntary associations (chains) of retailers under the auspices of wholesalers; retailer cooperatives; franchising - having received on commercial terms the rights to use the company's trademark under the obligation to comply with the technology and principles of production or provision of services; organizations of privilege holders (a system of retail privilege holders under the auspices of the manufacturer, a system of wholesalers - privilege holders under the auspices of the manufacturer, a system of retail privilege holders under the auspices of a service company);

indirect influence, which are formed under the influence of the size and financial power of one of the participants and its authority in the market.

Product distribution is carried out through distribution channels (product movement Product distribution (distribution) channel They call the path, sometimes quite complex, from the manufacturer to its consumers. Along this route, the goods may pass through a number of intermediaries - firms or individuals who transfer the goods from hand to hand. These intermediaries, as well as manufacturers, sellers and buyers of goods are called channel members.

The set of stages, actions and methods for identifying, selecting and attracting consumers, identifying rational ways and means of supplying goods in accordance with the terms of the contract, justifying methods and types of storage of these goods is distribution process.

Sales channels are:

Direct (no intermediaries).

Indirect (with intermediaries): one-level, two-level, three-level, four-level.

Horizontal (based on competition and individual achievement of profit).

Vertical (based on corporate cooperation and corporate profit).

Channel level - This is any intermediary who performs one or another function in bringing the product closer to the consumer. Since both producers and consumers perform certain work, they are also part of any channel.

Channel length (channel length) - this is the number of intermediate levels (intermediaries).

Channel width - this is the number of intermediaries at a particular stage of product distribution.

With a narrow distribution channel, the enterprise uses one or a few intermediaries, with a wide distribution channel, a large number of intermediaries. Depending on the number of intermediaries, there are four types of traditional distribution channels: zero, one-level, two-level and three-level.

Channel zero (direct marketing channel) consists of a producer and a consumer, i.e. goods distribution is carried out without intermediaries. It is advisable to use this channel when the market share is small. Direct marketing is carried out through company stores, mail order, peddling and other methods.

Single level channel: manufacturer? retail? consumer. Includes one intermediary. In consumer markets this is usually a retailer, and in industrial markets this is usually a sales agent or broker.

Two-level channel: manufacturer? wholesale? retail? consumer. Includes two intermediaries. In consumer markets, such intermediaries are wholesalers and retailers; in markets for industrial goods - an industrial distributor and dealer.

Three-level channel: manufacturer? wholesale? chalk co-wholesale trade? retail? consumer. Includes three intermediaries. Thus, in consumer markets, in addition to wholesalers and retailers, small wholesalers take part in distribution, who buy goods from large wholesalers and transfer them in small quantities to retail. In markets for industrial goods, the functions of small wholesalers are performed by agents.

In addition to the above, enterprises can use several distribution channels if they enter different market segments or expand their product sales activities. This type of distribution system is called mixed.

Existing distribution channels involve the use of three main distribution methods:

1. Direct , which consists in the fact that the manufacturer sells its products through the sales department or through sales branches directly to the consumer. The direct marketing method allows the manufacturer to maintain contact with the consumer and thereby control the sale of its products. In this case, trade margins and commissions for traders and intermediaries are excluded;

2. Indirect (through an intermediary). The trade distribution method involves the manufacturer selling his products to wholesale or retail trade. Inclusion of trade is advantageous when the manufacturer does not have a dominant position in the market, when the product needs to be introduced into the full range of the trade enterprise, or when the trader has extensive experience in the trade and has influence in the market;

3. Combined (mixed).

If a company supplies goods directly to retailers or the end consumer, then trade margins disappear, but the company's costs increase due to the assignment of trade functions (storage, transportation, sale). In this case, with equal market relations, direct sales are profitable if the saved trade margins are higher than the additional distribution costs.

With indirect marketing, the benefits are very difficult to determine because the market channel is virtually uncontrollable, strategy creation and change is conservative and time-consuming, availability and presence of the manufacturer cannot be guaranteed, and there is no direct contact with the clientele.

The choice of specific distribution partners also largely depends on which distribution method is preferred by the manufacturer:

1. Intensive (when the company’s product should be almost everywhere),

2. Selective (selective), based on the criteria of territorial, group requirements, characteristics;

3. Exceptional (exclusive), if these requirements are extremely individualized or the cost of the product is very high.

With intensive sales, the manufacturing company has to deal with all possible sales intermediaries. As a rule, in this case, intermediaries are not selected based on quality. However, large manufacturers can afford not to deal with small traders and not to try to get their goods to them, trusting that large intermediaries will already provide them with the required share of sales. But even in this case, it is important that these intermediaries are geographically located at an optimal distance from each other.

In certain cases, a manufacturing company prefers to have a single, exclusive sales intermediary who exclusively sells the goods of this company. For such an advantage on the part of the merchant, as a rule, additional services are required, compliance with certain conditions, for example, an established sales volume, etc.

In Fig. The most noticeable features of the considered competitive concepts in the field of sales are presented.

Rice. Characteristics of competitive concepts in the distribution system

Form of product distribution- This is an organizational technique, which is a variety of ways to promote goods from the manufacturer to the consumer.

There are 2 forms:

- transit when goods are delivered to a retail distribution network directly from manufacturing enterprises, bypassing the warehouses of intermediaries;

- warehouse- through one or more intermediary warehouse links.

Types of sales activities:

1. Wholesale- sale of large quantities of goods for subsequent professional use or resale.

2. Retail- sales of goods individually or in small, non-standard, scattered batches.

Wholesale and retail trade are types of sales of goods that affect the relationship of the manufacturer with suppliers, intermediaries and consumers in the system of distribution and promotion of goods (services).

Allocation decision criteria

The following criteria can be used as decision-making criteria when implementing marketing policy measures: the amount of turnover; market share; distribution expenses; the degree of branching of the distribution network, which is characterized by the level of preservation of the product during its distribution from the manufacturer to the final consumer; image of sales channels; the level of cooperation between subjects in the distribution system, ensuring a reduction in conflict and commercial risk; flexibility and survivability of the sales network.

The criteria for the effectiveness of distribution channels are:

1. Controllability - the ability to implement a strong-willed decision;

2. Providing guarantees;

3. Quality of customer service;

4. Consultations;

5. Conflict resolution;

6. Flexibility - the ability to quickly create and change a channel;

7. Availability and good location of the product;

8. Readiness for delivery and delivery time;

9. Customer proximity and distribution reliability.

Restrictions for the formation of distribution channels:

Current legislation (for example, the sale of drugs only through pharmacies);

Restrictions on product quality (liability, shelf life);

Technical (warehouse, transport and service capacities);

Wholesale trade is the purchase and sale of goods. Workers in this activity provide communication between producers and consumers. Sometimes a whole organization becomes a client of a wholesale enterprise. She is essentially both a buyer and a consumer. But most often there are one or more intermediate links. Until a product makes its way from the wholesaler to the consumer, it usually passes through 2-3 intermediaries (retailers).

Wholesale marketing includes any type of activity related to the sale of services and products to people who will resell them or use them for personal or business purposes.

What is wholesale trade?

Wholesale trade is one of the types of economic activity that helps to establish relationships between suppliers and buyers. During their interaction, each has its own benefit. Buyers receive affordable goods, sellers receive profit.

At the moment, wholesale trade is developing very rapidly, suppliers and the scope of their activities are expanding day by day. This is due to constant profit, good income. In addition, the emergence of new suppliers is also beneficial for buyers, since the range and competition between them is growing. This invariably leads to lower production costs and, as a consequence, lower prices at final retail outlets.

Wholesale sales do not have a fixed quantity of goods supplied. An agreement is concluded between the supplier and the buyer, which specifies the amount and number of products. The only thing we can say for sure is that trade is carried out in batches. Typically, delivery is focused on subsequent resale to the final buyer.

Wholesalers and their differences from retailers

A wholesaler is a company or individual that carries out related activities. It provides its services not only to retail organizations, but also to manufacturers and their sales offices.

A wholesale trade center and the people involved in this activity differ from retail centers in several ways:

• Minimizing advertising. A wholesaler deals with professional clients who independently collect information about the product. Only end consumers are interested in advertising.
• Maximum transaction size, as well as a large trading area. Compared to retailers, these parameters are several tens (or even hundreds) times higher.
• Different positions regarding legal norms and taxation by the state.

Sometimes manufacturers bypass wholesalers and market the goods themselves. But this is aimed mainly at small businesses. Large manufacturers prefer not to waste time searching for customers.

Wholesale trade and its essence

The wholesale trade center initially interacts with manufacturers. He goes to the sales office, where he “picks up” a certain amount of products (sometimes the entire product). Then it goes to retailers, and we distribute the shipment between them. Again, sometimes all the goods are picked up by one representative or company. After this, the products are supplied directly to personal consumption.

The most important task of this type of economic activity is to regulate supply and demand. Trade centers, in fact, can successfully cope with it, since they are the so-called intermediate link. They hold back some of the goods, then the demand for them will increase. Also, to increase supply, the products are supplied to the market in abundance.

It should be noted that wholesale trade activities are significantly limited. She can only work with the data that is given to her. It cannot influence the sphere of production or final sales. And it certainly doesn't have any direct impact on consumers.

Wholesale functions

Wholesale trade enterprises are sources of communication between individual regions of the country, and also in a global sense they contribute to interaction between states, both neighboring and distant. This is their main function. But there are also minor ones:

• Incentivizing manufacturing enterprises to create new products, modernize old models and widely introduce modern technologies.
• Participation in creating a range of goods and services, monitoring market conditions.
• Assumption of commercial risk. Some products may become unsaleable. Therefore, there will be no demand for them among retailers. It will not be possible to return the invested funds.
• Organization of warehouse operations, providing all conditions for storing certain products.

Finally, it should be pointed out that wholesale trade in products is intended for another function. She delivers goods to retail chains. Otherwise, they will not see the end consumer.

Retail and consumer service levels

Wholesale and retail trade are very similar. Both of these concepts imply that sales activities will be carried out. But retail sales are the sale of products to end consumers who will use them for personal purposes that are far from commercial.

There are several levels of service in the activity under consideration:

1. Self-service. It implies that a person will independently choose products and their names.
2. Free selection of products. Indicates that the consumer will be offered many goods of the same purpose, among them he will choose those that he likes best.
3. Limited service.
4. Full service (like in a restaurant).

There are a huge number of enterprises engaged in retail trade. These include various shops, catering establishments and others.

Trade is one of the areas of entrepreneurial activity and represents a certain type of commodity-money relations between the seller and the end consumer. Let's consider the specifics and features of retail and wholesale trade, as well as their main differences.

Retail trade – what is it?

Trade has long been considered a popular and profitable type of human activity. Its main goal is to generate income by satisfying the needs of the end customer.

The seller is the connecting link between the buyer and the manufacturer of the product: the entrepreneur purchases all kinds of goods in bulk and sells them at retail to customers with a certain trade margin, while benefiting himself.

If we give a brief definition of retail trade, then it is the sale of goods to the final consumer to satisfy his personal goals not related to commercial activities. Retail offers customers the following types of services:

• selection of goods among products of a similar purpose (for example, a certain type of alcohol from different manufacturers);
• independent selection of various goods at retail outlets (self-service stores);
• comprehensive (full) service (assisting the buyer at all stages of the purchase, up to free delivery);
• mixed type – sale of goods in small wholesale and retail (large stores, supermarkets).

Today, consumers have the opportunity to purchase any goods in stores on their own, make purchases in online stores, and also receive them at home via courier delivery. The main functions of retail trade include:

• commodity market monitoring;
• competitor pricing analysis;
• determining consumer demand for a certain type of product;
• search for products that meet consumer demand;
• formation of prices taking into account the cost of goods, advertising, storage, delivery.

Supermarkets and hypermarkets widely use the model of wholesale and retail trade in food, household goods and other consumer goods. If we consider retail outlets based on the range of products offered, they can be conditionally divided into specialized stores, department stores, supermarkets, as well as retail enterprises offering consumers various services:

• Specialized retail stores offer a narrow product range. An example of them would be retail outlets selling books, flowers, building materials, sporting goods or clothing. There are also stores with a limited product range, where they can sell jeans, underwear, children's toys, men's shirts, etc.
• Supermarkets are large retail establishments specializing in self-service for visitors. Such stores are characterized by high sales volumes, low costs and average profitability. Mostly consumers visit them to buy food, household goods or household chemicals.
• Department stores have several product groups at the same time. Customers can purchase all kinds of clothing, household goods, tools and equipment for household needs, as well as everyday household goods at such outlets. A feature of such retail outlets is the presence of product departments in which a certain group of products is located.
• The service provided by retail service enterprises is in great consumer demand. This should include cinemas, medical institutions, educational institutions, banking organizations, restaurants, hotel complexes, hairdressers, repair service enterprises.

Important: according to statistics, the number of organizations providing retail services is steadily growing and is an order of magnitude greater than the number of retail outlets for food and consumer goods.

Wholesale trade – what is it?

The commercial activity of enterprises aimed at selling goods in certain quantities (both large and small) is called wholesale trade. Such organizations mainly cooperate directly with manufacturers of all kinds of products, purchasing them in bulk for the purpose of further resale to the retail chain.

The rapid development of wholesale trade enterprises is easily explained by the high demand for various goods among consumers and continuously growing profits. This type of commodity-money relations is of great benefit to buyers: increased competition and product range invariably entails a reduction in the cost of various product groups, which ultimately leads to lower selling prices in retail stores.

Without wholesale trade organizations, it is difficult to imagine the full-fledged operation of most enterprises producing all kinds of products. This is due to the fact that goods are produced in certain cities, and it is not possible to find the required number of consumers in one locality.

In turn, wholesalers facilitate the distribution of products across various regions, significantly increasing the consumer network. Please note that the business itself that produces goods or food is a wholesaler. Products can be sold at special prices through special wholesale stores or through an agreement with the sales department of the manufacturer.

Thus, a product can be resold several times between different organizations before it reaches the end consumer through retail stores. Wholesale trade enterprises pursue the following goals:

• development of sales channels for goods;
• searching for suppliers of products for retail chain enterprises;
• creation of reserve financing for the flow of goods;
• purchasing large quantities of goods from manufacturers;
• increasing the number of intermediate buyers of goods (wholesale);
• monitoring and detailed analysis of trade turnover in the retail network.

Wholesale trade enterprises perform a number of important functions that form the relationship between producers and the end consumer. They also provide regional communication within the state. It is worth noting that wholesale trade organizations stimulate the work of manufacturing plants to create new products.

It is important to understand that wholesalers take risks and can incur large financial losses. This is primarily due to products that are not in demand among consumers, and therefore retail stores do not buy them. The wholesaler will not be able to return the money invested in the product.

Like retail stores, wholesale trade enterprises purchase products from manufacturers in a certain range, taking into account consumer demand. Wholesalers are required to stock up various products depending on the season and also ensure their storage. For this purpose, specialized terminals and warehouses are used.

Wholesale companies ensure the process of product distribution not only within a certain state, but also far beyond its borders. In addition, they control the quality of the goods that are supplied to the retail chain.

Products can be delivered to retail stores with a deferred payment for a certain period of time, which is a kind of lending and stimulates the growth of purchase volumes.

What is the difference between wholesale and retail?

Let's figure out what differences exist between wholesale and retail. By definition, retail enterprises interact with a specific category of consumers, who can be both organizations and individuals, as well as separate divisions of various companies.

Important: If the buyer is not engaged in business activities and purchases certain products under standard conditions, they will be sold at retail. No one can determine the exact volumes of goods for them to be considered a wholesale batch. In many ways, this issue is regulated by the type of contract (wholesale trade enterprises enter into shipping agreements with buyers).

Wholesale and retail trade differ from each other in their documentation. Retail enterprises use cash and sales receipts, as well as other documents confirming payment. Wholesalers working for OSNO draw up contracts with customers, provide them with invoices, delivery notes, and also maintain a purchase ledger and a sales ledger.

Both types of trade differ from each other in the purpose of the goods. If a retail store sells to the end customer a product that will be used by him for personal purposes without pursuing a commercial purpose, the wholesale company sells for the purpose of obtaining commercial gain.

Both retailers and wholesalers accept cash and non-cash forms of payment when paying for products. They also have the right to cooperate with individuals and legal entities.

What is retail?

Retail sales of all kinds of products to the end consumer (without further resale of the goods) is called retail. On the territory of the Russian Federation, trade relations between retail participants are regulated by the Law on the Protection of Consumer Rights.

Retail trade can be organized by having a cash register at the point of sale and issuing a receipt to the consumer for the purchase made. Today it is customary to distinguish several types of retail:

1. The classic type of organization of work of a retail trade enterprise is street retail. This includes shops located on pedestrian streets of populated areas, as well as retail outlets located on the ground or first floors of buildings and residential buildings. Today, shopping centers are direct competitors of street retail, since they have a large number of all kinds of trade enterprises (shops, boutiques, mini-markets, as well as retail service enterprises) and a large assortment of various goods. The location of street stores and the absence of shopping centers, large markets and supermarkets are the main conditions for the successful operation and development of street retail.
2. Retail trade in food products, the quantity of which is located in large retail areas, is usually called food retail. It is distinguished by the constant income of its owners, because food products, regardless of the financial solvency of the population, will be in daily demand. Supermarkets and megamarkets are successful food retail projects.
3. Retail trade in non-food consumer goods (household appliances and chemicals, sporting goods, clothing, building materials, household goods) is a format of the so-called non-food retail. In food stores, this group of products is called related products. The range of such products is selected taking into account seasonal consumer demand or upcoming holidays.
4. Selling goods through virtual stores or one-page websites is called online retail. Payment can be made using cash or non-cash payments.
5. The provision of services by cellular operators to the population is called mobile retail. The large increase in profits in this trade segment is easily explained by the demand for communication services.
6. A set of stores, the design and operation of which consist of a single format and within a certain trading concept, is called chain retail. In other words, this is a network of retail outlets of one owner (less often several), which are easily recognizable by their corporate identity. Such a trading enterprise has a unified logistics system responsible for the delivery and wholesale purchase of products. Chain retail offers potential buyers attractive prices for goods and a wide range of products. As a rule, such enterprises receive considerable profit due to the volume of sales from all points of the network.

Retailers – what are they?

Supermarkets, various types of stores, markets and other retail outlets that carry out retail sales of goods to the end consumer are called retailers. These organizations operate in various segments of commodity turnover. The main ones include: