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Methods of Retailng
Methods of Retailng
Lesson 20
with
Treisa Cornwall
Retailing is the distribution process that covers all activities involved directly when selling directly to
end-users, consumers. In the supply chain, retailing is the last link between the manufacturer and the
consumers. They are called intermediaries or middlemen between the manufacturer and consumers
as they aid in getting the products to consumers. The following table below outlines the most popular
methods of retailing.
Shops are retail outlets; they allow customers to have a personal interaction with products. They
Shops
include mini-marts, convenient shops and supermarkets.
These are large city-centre shops that offer a wide variety of products. They can be multiple outlets
Department stores
under one roof and have different departments e.g., Men, women, home, décor, garden etc.
Products are ordered from a catalogue. This is convenient for customers as orders can be placed
from the convenience of their homes. The products are delivered to customers’ workplace or
Mail order
home; there is the ease of returns if the business is locally based. Customers however do not get
to see/try the product before purchase and must rely solely on description seen in the catalogue.
This is an automated machine that dispenses stored products after the payment is made. It is
Vending machines convenient, opened for 24 hours seven days per week in some instances; however, it is more
expensive than traditional shops.
Products are sold via the telephone hence customers place their order using the telephone.
Tele-marketing Customers may be hesitant if they have no prior interaction with the product. Unlike e-commerce
and catalogue, the customers can interact with the salesperson.
The product is purchased from a website, orders can be placed anywhere anytime once the customer
has access to data or Wi-Fi. Payment is made for goods using a credit card or a visa debit card.
E-commerce
It may be difficult to return purchase if the product is ordered from another country. The personal
information of a customer (card number and customer contact) may be stolen by online hackers.
TERMS OF SALE
Terms of sale include the price, quantity and quality agreed on between the seller and customer
in relation to how payment will be made. The table below outlines the varying terms of sales
used in businesses.
The cash price for the product is broken down into several payments
Credit usually over a period of a year. The seller will make monthly payments
until the cost is paid in full.
This method is generally used for expensive items. The buyer will make a
down payment and the remaining balance is spread over a period of one
Hire purchase
year to five years. An interest rate is usually included in the balance of the
payments.