Definition Definition

What Is Retailing? Types of Retailing with Practical Example

What is Retailing?

Retailing refers to all the activities which are involved in selling products or services directly to final consumers for their personal and nonbusiness use. Any organization selling to final consumers— whether it is a manufacturer, wholesaler, or retailer— is doing retailing. 

Understanding Retailing

Retailing is the marketing activity involved in selling products to final consumers for personal or household use. Regardless of the way in which products are marketed, any company that offers eventual delivery to the end customer is considered to be involved in the practice of retailing.

Any firm whose primary source of income is retailing is referred to as a retailer. Retailers are the last communication link between producers and end consumers.

Types of Retailing

There are five different types of retailing. The multiple kinds of retailing that currently exist are listed below –

Store retailing: Showrooms, specialty stores, grocery stores, retail outlets, thrift shops, and other sorts of retail outlets are included.

Non-store retailing: Non-store retailing is a sort of sale that takes place outside of traditional stores or supermarkets.

Corporate retailing: Retailing through commercial networks such as national chains, partnerships, and branding corporations are involved.

Internet retailing: Internet retailing, also known as online retailing, is based on the same principle as traditional retailing. It sells small amounts of items to the end consumers, but it responds to a bigger market and lacks a real retail business where the buyer may have the access to the products.

Service retailing: The practice of a retailer dealing with services is known as service retailing. Service retailing includes places like cafes, motels, pubs etc.

Practical Example

Beck has a factory where workers make leather shoes. He is a manufacturer and sells the shoes to wholesalers who buy the bulk amount of products from Beck. Then the wholesalers sell those leather shoes to retailers. The retailers sell shoes to final customers in a minimum number.

On the other hand, Paul has a similar kind of factory as Beck. But Paul sells his products directly to the final consumers. In this case, Paul is both a manufacturer and a retailer. 

In Sentences

  • Retailing is a range of operations that involves selling items/products to end consumers specifically.
  • Retailing is in charge of directly connecting the final user's wants with the producers' inventories.

 

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