Services to Consumers

From the consumers' point of view, retailers provide these important services:

• Regular availability of products: The retailer's most important service is keeping various products (made by different manufacturers) regularly available, so buyers can purchase as and when needed.
• New products information: Through effective display of products and personal-selling effort, retailers inform customers about the arrival and special features of new products, which helps in the buying decision.
• Convenience in buying: Retailers buy in large quantities and sell in small quantities to match customer needs. Being situated close to residential areas and open for long hours, they offer great convenience.
• Wide selection: By stocking a variety of products from different manufacturers, retailers let consumers choose from a wide selection.
• After-sales services: Retailers provide after-sales services such as home delivery, supply of spare parts and attending to customers, which encourages repeat purchase.
• Provide credit facilities: Retailers sometimes extend credit to regular buyers, enabling them to raise their level of consumption and their standard of living.

Terms of Trade (common terms used in trade):

• Cash on Delivery (COD): Payment for the goods or services is made at the time of delivery. If the buyer cannot pay when the goods are delivered, they are returned to the seller.
• Free on Board / Free on Rail (FOB or FOR): A contract in which the seller bears all expenses up to the point of delivery to a carrier (a ship, rail, lorry, etc.). …