The peculiarities of modern trade are in a rather complex approach to organizing the process. This is no longer the simple exchange of goods as it was in ancient times. Today, trade relations are based on a whole system of factors and marketing strategies, although the theory has remained unshakable since the inception of such human activities.
Main types of trade
Traditionally, the types of trade include wholesale and retail.
- Wholesale is the sale / purchase of large quantities of goods for the purpose of their further processing or use for retail.
- Retail is the sale of goods directly to the consumer.
Obviously, each type assumes a different approach to the organization of economic and technological activities, as well as to marketing and promotion of goods.
- Wholesale sales involve the provision of products to intermediaries or processors who will use the product in their further activities for commercial purposes. Accordingly, the target audience is mainly legal entities. In addition, to organize this type of trade, there is no need to organize retail space – for the presentation of products, the manufacturer or supplier uses presentation catalogs, showrooms, if necessary, as well as Internet sites. The goods are stored in spacious warehouses, from where they are dispatched.
- Retail sales involve a completely different approach: as a rule, it is the organization of a store trade or using complex marketing systems. Retail methods today represent a broader range of solutions. This is due to the development of remote sales and an extensive system of delivery services.
Types and forms of retail trade
Retail methods are highly dependent on the characteristics of the product. Although strategies often overlap, if the product does not require specific presentation and storage conditions. The concept of types of retail sales implies the possibility of selling goods individually or selectively in small batches. So, the main trading methods are called:
- Self-service. Examples are the numerous supermarkets and hypermarkets that are popular with the consumer today, since you can independently choose the desired product in any quantity.
- Through the counter. In this case, it becomes necessary to provide the services of a seller who will weigh and release the required volume of any product. Many companies today are trying to get away from this form, but it reduces the risk of theft. This approach remains relevant for products that need to be weighed, cut, packaged.
- With an open layout. This is how the vast majority of clothing stores work, where the buyer can take and try on the product he likes. The organization of this form of trade requires a careful approach to the arrangement of the retail space. Here it is necessary to use special equipment that will help to display the goods in the most favorable light, as well as provide convenience for both sellers and consumers. Self-service supermarkets can be attributed to the same type, since literally any product here is in the public domain.
- By mail. In this case, the sale of various products according to the catalog is carried out. These can be books, cosmetics, household items, clothing, shoes, and more.
- Through vending machines. An example of this form of retail trade are coffee machines, as well as equipment that allows you to purchase only the presented snacks in automatic mode.
- Through the Internet. Modern types and forms of trade are increasingly reduced to the provision of services on the worldwide network. It can be just a business card of a company that works with a certain group of positions or is a manufacturer of such. An effective method today is the organization of an online store.
Retail trade features
Considering the types of retail, they can be grouped into three broad groups:
The first two involve direct contact between the buyer and the seller, while the third is service via Internet sales or mail. Remote trading methods do not require the organization of trading spaces, providing all the information in catalogs and on site pages. It is convenient for the consumer and economical for the seller. Nevertheless, not all goods are comfortable to buy in this way, and a number of customers simply do not like to buy something without “feeling” it.
The stationary form remains the main trading method. At the same time, retail outlets can present and sell goods in different ways, offering customers the opportunity to choose:
- large or small stores;
- stalls, stalls;
- self-service points or shops with counters and sellers.
Trading methods in this case allow you to present the product from its best side in close proximity to the consumer. And it’s not just about clothes, shoes and a variety of household items. Even food products require favorable positioning due to serious competition in literally all market segments.
It is important to develop a competent marketing strategy and use effective merchandising. And this is no longer about products, but about the whole store, because the main player in retail is a point of sale with a certain range of products from different brands. Only company representations combine the promotion of both the manufacturing company and its products.
The peculiarities of retail trade are, as a rule, to provide the consumer with the opportunity to quickly and easily find a point of sale. This is no longer the promotion of the product as such, but the organization of convenience for customers. Shoppers usually choose stores based on three parameters:
- convenience of location;
- price level;
Retail methods are about providing the consumer with the best conditions in all respects. An additional advantage of the store will be the convenience of movement inside it and the ability to examine the product as detailed as possible. Therefore, it is important to use the principles of ergonomics when arranging the space. This is usually helped by effective equipment – hangers, rods, shelves, racks and much more. With simple solutions, different retailing methods are maximized.