Types of Services Provided by Retailers

9 Apr


Types of Services Provided by Retailers

The retail industry encompasses all those enterprises engaged in the supply and merchandising of goods to the end-users. While these end-users may be individual consumers or companies engaged in the retail business, it is the system that manages, maintains and develops the product and its marketing through the various channels of distribution. A retail system could also be referred to as a business process, which incorporates numerous operations from sales, service, marketing, merchandising, administration and so on.

In terms of the operation of the retail industry, there are two major categories of channels used by the retail business for selling its products. The first category is the channel where the products are supplied to the end-users through the supply chain. The products are purchased from the manufacturer and delivered to the end-users through the network of distributors and retailers. Retailers, distributors and manufacturers are all members of the manufacturing unit. This unit is responsible for the timely delivery of the products and the quality of the products.

The second category of the retail business is the channel where the products are supplied directly to the end-users. The products are delivered to the customers who are the members of the supplier’s channel. These products are stored in warehouses or in other storage locations and delivered to the end-users on time and in a pre-defined way.

The types of materials used in the retail chain include: materials such as, paper, packaging, cardboard, plastic and paperboard, cloth, glass, aluminium, plastic and aluminum foil. Materials such as these are used by the retailers to deliver the products. The supply chain also involves the use of transportation equipment like trucks, air and sea cargo and electric-powered vehicles to ship, deliver and store the products.

The supply chain of the retail business also includes the purchase of raw materials, installation of manufacturing tools, purchasing the necessary parts and machinery and training of the staff for efficient and effective management of the production and supply chain. The retail supply chain includes the procurement of raw materials, manufacturing tools, buying raw materials, purchasing and installing required machinery and products, hiring of suitable employees and training of staff. The physical part of the retail supply chain includes the packaging of the products, the delivery of the products, warehousing and storage facilities, marketing strategies and advertising.

The demand for retail products is increasing at a fast pace because of the growing number of users of such products. The amount of money spent on retail products has increased manifold over the years.

As consumer buying habits have changed, the pace of the retail business has also changed. Consumer shopping has become more comprehensive and faster and this has resulted in the boom of the retail industry. The rapid growth of the retail industry has led to a sudden increase in the number of small-scale retailers. However, most of the small retailers are not able to sustain the cost of operation due to the loss of sales at the large retail stores.

There are various types of service providers engaged in the retail industry. They include wholesalers, manufacturers, retail brands, distributors, brand owners, traditional retailers, internet retailers, and online retailers. The growth of the retail industry has affected the prices of goods as well as their availability. This has led to increasing sales of the retail businesses.