YOGYAKARTA - Retail is a term in the business world that is familiar to many people. Retail is also one of the business models that is quite popular because it offers promising benefits. So what is retail and what is the business scheme?
Retail businesses are more popular called retailers or retail sellers. Retail business actors are at the end of the supply chain and sell directly to end consumers. The forms of retail businesses are quite diverse, from large to small scale. If you are interested in becoming an entrepreneur of this business model, then first you need to understand what retail business is and what its characteristics are.
Retail is a business activity that sells products or services to end consumers for self-use and is not re-traded. Retail business players are called retailers or retailers. Retail is part of a distribution supply chain that has an important role in the journey of goods from producers to consumers.
There are two types of retail, namely modern retail and traditional retail. Modern retailers are retailers on a large scale, such as hypermarkets, supermarkets, and department stores. While traditional retailers are retailers on a smaller scale, such as market traders, grocery stores and so on.
Although both types of retail have different sales scale, large and small, the goal is the same, namely selling the products to end consumers. The sales process or retail business transactions can be done online and physical stores. Currently, there are many retailers or retailers who sell on social media, marketplaces, to websites.
Retail business players will cooperate with large companies or the first producer to collect goods to be sold. Many people are interested in the retail model business because they don't need to think about the production process of their goods. Retailers only focus on selling their goods to end users.
With retail, the company also has the convenience of selling its products because there is no need to think about where the goods will end. The company is only focused on producing its goods.
There are still many who think that retail and wholesale are the same business models. Though both have different characteristics. In the retail business, these business people will sell their goods in retail with the last consumer target.
Meanwhile wholesalers sell their goods in large quantities and don't think about the large number of end-level consumers. In wholesale business, wholesale products buyers can resell their goods to end consumers.
Retail and wholesale businesses also have differences in terms of the selling price of goods. Products sold by retailers have a higher price so that the profit is even higher. The retail price is higher because there are additional costs of selling merchandise to end-level consumers.
Meanwhile, products sold by wholesale businesses are usually cheaper than retailers. Retail sellers set cheaper prices because they also take goods from big parties. wholesalers run their products in large quantities to various shops or outlets and retailers.
That's a review of what retail is and its business scheme. Retail business plays an important role in the distribution flow of goods sold. This business model is widely popular because retailers do not need to think about the production process of goods and can get maximum profits if they already have subscription consumers.
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