INTERNAL TRADE

What is Trade?

Trade refers to buying and selling of goods and services with the objective of earning profit.

What is Internal Trade?

Internal trade refers to buying and selling of goods and services within the boundaries of a nation.

What are the types of Internal Trade?

There are two types of Internal Trade :-

1) Wholesale trade

2) Retail trade

What is Wholesale Trade?

Wholesale trade refers to buying and selling of goods and services in large quantities for the purpose of resale or intermediate use.

Services provided by Wholesalers

1. Services to Manufacturers

​

2)Services to Retailers

Services to Manufacturers

1. They enable the manufacturers to gain the benefit of large scale production.
2. They bear the risk on behalf of manufactures like of risk of fall in prices, theft, fire, etc.
3. They provide financial assistance to the manufacturers.

​

4) They provide expert advice to the manufacturers related to customer’s tastes and preferences.

5) They enable the manufacturers to get relieved from marketing activities.

6) They provide storage and warehousing services to the manufacturers.

​

​

Services to Retailers

1. They make the goods readily available to the retailers.
2. They undertake various marketing activities on behalf of Retailers.
3. They sell goods to the retailers on credit basis, thereby, providing them financial assistance.

4) They pass on the benefit of their specialized knowledge about the products to the Retailers.

5) They share the risk of storage, obsolescence and reduction in prices with the Retailers.

What is Retail Trade?

Retail Trade is that branch of business which is related to sale of goods and services to the ultimate consumers for their personal use.

Services provided by Retailers

1. Services to Manufacturers and Wholesalers
2. Services to Consumers

Services to Manufacturers and Wholesalers

1. They provide help in the distribution of products to the consumers scattered over a large geographical area.
2. They undertake personal selling efforts and relieve the manufacturers from this activity.
3. They enable the manufacturers and wholesalers to operate at large scale

4) They collect market information about the tastes and preferences of consumers.

5) They participate in the promotional activities of the business.

Services to Consumers

1. They ensure regular availability of products to the consumers.
2. They provide information about the arrival and special features of the products to the consumers.
3. They provide convenience to the customers in buying products of their requirements.

​

4) They enable the customers to make their choice out of a wide selection of goods.

5. They provide after sale services to the consumers.

6) They provide credit facilities to the regular buyers.

What are Departmental Stores?

A Departmental Store is a large establishment offering a wide variety of products, classified into well defined departments, aimed at satisfying practically every customer’s need under one roof.

Salient features of a Departmental Store

1. They provide all facilities under one roof.
2. They are generally located at a central place.
3. They are generally formed as a Joint Stock company.

4. They combine both the functions of retailing and warehousing.
5. They have centralized purchasing arrangements.

What is a Chain Store?

Chain Stores are networks of retail shops that are owned and operated by manufacturers or intermediaries.

Salient features of Chain Stores

1. They are located in fairly populous localities.
2. The purchase of goods is centralized.
3. Each retail shop is under direct supervision of a branch manager.

​

4. All the branches are controlled by the Head Office.
5. The prices of goods in such shops are fixed and sales are cash basis.
6. The shops are supervised by inspectors appointed by head office.

Difference between

Departmental Stores

and Chain Stores

THANK YOU