Internal trade

Trade :
Trade refers to buying and selling of goods for
earning profit.
Internal :
Any thing which have certain limits.

Introduction :
On the basis of geographical location of buyers
and sellers trade can be classified i.e.
 Internal Trade
 External Trade

Internal Trade :
Buying and selling of goods and services
with in the boundaries of a nation are referred as
internal trade (or) Domestic Trade (or) National
Business (or) Home Trade.
External Trade :
The business activities take place across
the geographical boundaries is called External (or)
International Trade.

Internal Trade
Wholesale Trade Retail Trade
Itinerant Retailers Fixed Shop Retailers
Peddlers Hawkers Market
Traders
Street
Traders
Cheap
Jacks
A

A
Small Shop Keepers Large Retailers
General
Store
Specialty
Shops
Street Stall
Holders
Second Hand
Goods Shops
Departmental
Stores
Super
Market
Chain
Stores
Malls MOB Consumer
Co-op Stores

Wholesale Trade :
Wholesale trade refers to buying and selling of goods and
services in large quantities for the purpose of resale or intermediate
use.
In other words wholesaler is a person who buys goods from
producer in bulk quantities to a retailer.

Functions of Wholesaler
 Wholesaler enables the producer to reach large number of buyers
spread over a wide geographical area through retailers.
 They generally take the tittle of the goods and bear the business
risks by purchasing and selling the goods in their own name.
 They purchase in bulk and sell them in small quantities to retailers.
 They undertake various activities such as grading of products,
packing into small lots, storage transportation, promotion of goods,
collection of market information, collection of small and scattered
order of retailers and distribution of supplies to them.
 They also relieve the retailers of maintaining large stock of articles
wholesalers helps in equalization of prices between places and
times.

Services of Wholesalers to Manufactures
• Facilitating Large Scale Production
Wholesaler collects small orders from a number of
retailers and passes on the pool of such orders to the
manufactures and make purchases in bulk quantities. This
enables the producers to undertake production on large scale
and take advantage of the economies of large scale.

• Bearing Risk
The wholesale merchant deal in goods in their
own name take delivery of the goods and keep the
goods purchased in large lots in their warehouses. In this
process they bear variety of risks such as the risk of fll
in prices, theft, pilferage, spoilage, fire etc.,

• Bearing Risk
• Financial Assistance
The wholesalers generally make cash payment for
goods purchased by them. Sometimes they also make advance
money to producers for bulk orders placed by them. This help
the manufacturers for their funds.

• Bearing Risk
• Expert Advice
As the wholesalers are in direct contact with the
retailers they are in position to advice the manufactures about
various aspects including customers taste and preferences,
market conditions, competitive activities and the features
prefered by the buyers.

• Bearing Risk
• Expert Advice
• Help in Marketing Functions
The wholesalers take care of the distribution of goods to a
number of retailers who in turns sell these goods to large number of
customers spread over a large geographical area. This relives the
manufacturers from many of the marketing activities and enables them to
concentrate on the production activity.

• Bearing Risk
• Expert Advice
• Facilitates Production Continuity
The wholesalers facilitate continuity of production activity
throughout the year by purchasing the goods as and when these are produced
and storing them till the time these are demanded by retailers or consumers
in the market.

• Bearing Risk
• Expert Advice
• Facilitates Production Continuity
• Storage Wholesalers take delivery of goods when these
are produced in factory and keep them in their godwons/
warehouses. This reduces the burden of manufactures of
providing for storage facilities for the finished products.
Thus they provide time utility.

Services of Wholesalers to Retailers
• Availability of Goods
Retailers have to maintain adequate stock of varied
commodities so that they can offer variety to their customers.
They provide the different products various manufactures
readily available to the retailers.
This relives the retailers of the work of collecting goods from
producers and keeping big inventory of the same.

• Marketing Support
The wholesalers perform various marketing functions and
provide support to the retailers.
They undertake advertising and other sales promotional
activities to induce customers to purchase the goods.
It is benefitted to the retailers to increase the demand for
various new products.

• Grants of Credit
The wholesalers generally provide credit facilities to their regular
customers.
This enables the retailers to manage their business with relatively
small amount of capital/ working capital

• Grant of credit
• Specialized Knowledge
The wholesalers specialize in one line products and know the pulse of
the market.
They pass on the benefit of their specialized knowledge to the retailers.

• Grant of credit
• Opportunity to get new goods
The wholesaler brings to the notice of the retailers the new type of
goods that are produced by the manufacturer.
This give opportunity to get new types of goods for expanding their
business.

• Grant of credit
• Opportunity to get new goods
• Risk Sharing
The wholesalers purchases in bulk and sell in relatively small quantities
to the retailers.
They help us in purchasing small quantities.
It also avoid the risk of storage, pilferage, obsolescence, reduction of
cost/ price and demandfluctuations.

Retail Trade
Retail trade refers to sale of goods in small
quantities for final consumption.
Retailer:
Retailer is a person who buys the goods in
small lots/ large quantities from the wholesalers
and sells them in small quantities to the ultimate
consumers.

Services Of Retailers To
Manufacturers & Wholesalers
• Help In distribution of goods
As this people are scattered over different geographical
areas. As he helps in the distribution of wholesalers and
manufacturers products by making these available to the
final consumers.

• Help in Distribution of Goods
• Personal Selling
In the process of sale Personal selling is must. As the
wholesaler and manufacturer cannot communicate with the
customer directly so retailer helps in this process.

• Enabling Large Scale Operations
The manufacturers and wholesalers are freed from the trouble of
making individual sales to consumers in small quantities.
This enables the wholesaler and manufacturer relatively work on large
scale operations.

• Collecting Market Information
The retailer is direct touch and contact with the buyer /customer
/consumer. He will be collecting the feedback of the products and
help the wholesaler and manufacturer for changes in the products.
He remains in important source in collecting the market information
about the taste and preferences and attitude of the customer/consumer.

• Collecting Market Information
• Help In Promotion
Time to time manufacturer and wholesaler should provide promotional
activities in order to increase the sales of products.

Service Of Retailer To Consumer
• Regular Availability Of The Products
This is the most important service rendered by the retailer to his customer
is to maintain regular availability of the products by different
manufacturers.
This may help the buyer to buy different products as and when
necessitated.

• New Products Information
The retailers arranges the variety products with effective display along
with personal selling efforts, retailers provide important information
about the products and special features for arrivals.
This impacts the buyer to buy the products.

• Convenience In Buying
As the retailer are scattered in different areas and located near by the
residences it help the buyers to buy the products as and when required.
As they buy in bulk quantities and sell in according to the requirement
of the customer/ consumer .

• Wide Selection
The retailer generally keeps the wide range of products of different
manufacturers. Which help the customer/ consumer to make their choice
among wide variety of products.

• Wide Selection
• After Sales Services
Retailer provide different service to his customers after sales like free
home delivery of the products, supply of spare parts, and attending the
complaints.
This is an important factor in the buyer’s decision for repeat purchase of
the products.

• Wide Selection
• After Sales Services
• Provide Credit Facilities
The retailers sometime provide credit facility to the regular buyers.
This enables the increase of their level of consumption and there standard
of living.

Types Of Retailer Trade
Itinerant Retailers
Small Scale Fixed Shops
Large Scale Fixed Shops

Itinerant Retailers
Itinerant retailers are traders who do not
have a fixed place of business to operate the
business.

Characteristics Of Itinerant Retailers
 The itinerant retailers may operate as regular traders
throughout the year or as seasonal traders operating during a
particular season.
 They are small traders operating with limited resources.
 They normally deal in consumer products of daily use such
as toiletry products, fruits, vegetables, milk, glass ware etc.,
 They give door to door delivery service to customers.
 They keep limited inventory of merchandise either at home
or at some other place.
 Their prices are not fixed but are subject to bargaining.
 As they dispose their stock in a day or two days, generally
they do not suffer from fluctuation of prices.

Types Of Itinerant Retailers
I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks

I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks
This Retailers carry their goods/products on their head
(or) back from one door to another in the streets for
selling the goods/ products.
Ex: Vegetables, Fruits, Flowers, Etc.,

I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks
These are the people who carry their goods on back of
the animals (or) by using wheeled carts from one street to
another for selling the product/ goods.

I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks
Market traders are the small traders who open
their shops at different places on fixed days or
dates.

I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks This traders are also called Pavement Vendors. This
people are found in the places where huge floating
population gathers, near by railway station, bustands etc.,

I. Pedlars
II. Hawkers
III. Market Traders
IV.Street Traders
V. Cheap Jacks
Cheap Jacks are petty retailers who have independent shops of a
temporary nature in a business locality. They keep on changing their
business from one locality to another depending upon the business.

Small Scale Fixed Shops:
These are the retail shops are established
in every nook and corner of most of the cities.
They operate their business with small capital
and small stock in a fixed place.

Small Scale Fixed Shops
I. General Stores
II. Specialty Shops
III. Street Stall Holders
IV.Second Hand Goods Shops
V. One Price Shops

I. General Stores
II. Specialty Shops
V. One Price Shops
General stores are commonly found in local
market near by the residential areas. These shops
provide basic needs(day to day needs) of the
consumers residing in near by localities.
Ex: Soaps, Stationary, Etc.,

I. General Stores
II. Specialty Shops
V. One Price Shops
The retailer store is specialised in the sale of
specific goods / products.
Ex: Garments, Textiles, Toys and Gifts, Etc.,

I. General Stores
II. Specialty Shops
V. One Price Shops
They are situated in the corner of the
street they deal in low price articles like
Soft Drinks, Cookies, Etc.,

I. General Stores
II. Specialty Shops
V. One Price Shops These shops generally sell used goods like
books, furniture, automobiles, Etc.,

I. General Stores
II. Specialty Shops
V. One Price Shops
These are the shops were sell different products at one price.
They sell daily usable unbranded items like gift items, toys,
Etc.,

Large Scale Fixed Shops
Large Scale Fixed Shops are started with a
large capital, located in important places and
markets and towns and cities.

Types Of Large Scale Fixed Shops
I. Departmental Stores
II. Super Market
III. Malls
IV.Chain Stores Or Multiple Shops
V. Mail Order Business House
VI.Consumer Co-operative Stores

Departmental Stores
Departmental Stores are a fixed shops
which sells different kinds of goods under
different departments in a single building,
there may be separate departments for
medicines, furniture, textiles and elctronics
etc.,
Ex: Spencer

Features of Departmental Stores
 The modern departmental stores provide all facilities such as travel
enquiry, rest rooms, information bureau, and restaurant etc.,
 These are generally located in the hot/ centre of the city which caters
to a large number of public.
 They try to provide maximum services to high class of customers
whom the prices are secondary.
 The size of these stores are very large. These stores are generally
formed as a joint stock company managed by the board of directors.
They assist managing directors and general manager and
departmental managers.
 Departmental stores combines both the functions of retailing as well
as warehousing. Purchase of these stores are done directly with
producer itself and operate separate warehouse.
 They have centralized purchasing arrangements. The purchases in a
departmental store are made centrally by the purchase department of
the store, where as sales are decentralized in different departments.

Super Markets
A super market is organised on
departmental basis where customers can buy
various types of goods under one roof
Ex: Food World, More, Reliance Fresh, Etc.,
Features
Super Market generally consists of complete line of food
products (like groceries, ready to eat, and snacks etc.,) in
addition to non-food items convenience goods.
Buyers can purchase different kinds of products of different
producers as per their requirements under one roof in such
markets.

Super market operates on the principle of self
service. This helps them to reduce the cost of
distribution.
The goods are sold on cash basis only.
Super markets are generally located at central
location to secure high tomorrow.
Prices of the products are generally lower than
other types of retailers because of bulk
purchasing, lower operational cost, and low profit
margins.

Malls
It is a mercantile establishment consisting
of a carefully landscape complex of shops
representing leading merchandise.
In other words a shopping mall is a
building comprising of different stores and
outlets the sell their individual products to the
consumers.

Features:
• The consumer can be able to get all general purpose products in malls,
provided by the different reailers so he can, compare and contrast
between quality and price of the products.
• The malls are huge shopping complexes built at places in the city
center.
• Malls are fully air conditioned and customers find shopping an
enjoyable and passionable.
• Each mall has adequate parking facility, restaurant and gaming's for
their children's.
• The malls provide employment opportunities to lakhs of persons across
the country.
• The articles are neatly displayed at appropriate places where customers
can have close look of the products and check their prices on the tags of
different products.
• Each item purchased is regularly billed properly with taxes duly
charged and remitted to the government.

Internal trade

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