Advantages and disadvantages of small scale retailers

////Advantages and disadvantages of small scale retailers

Advantages and disadvantages of small scale retailers

Small scale traders at Mbare Musika. Image credit skyscapercity.com

Small scale traders at Mbare Musika. Image credit skyscapercity.com

ZIMSEC O Level Commerce Notes: Retail Trade: Advantages and Disadvantages of small scale retailers

Advantages of small scale retailers to Consumers

  •  open for long hours or even during holidays
  • sell a variety of goods
  • cater for individual tastes
  • sell in very small units
  • may be specialists, selling one line goods
  • offer

-personal services

-delivery services

-after sales services

-informal credit to well known customers

Advantages to the Retailer

  • the retailer requires little capital to establish the business
  • the retailer benefits by having low overhead expenses
  • there are less legal formalities required to be observed
  • flexible to changes in market tastes

Advantages to Consumers

  • goods are usually sold at high prices
  • Slow in serving customers as they have to stand in queues
  • Goods sold may not be fresh
  • Choice of goods is limited
  • normally do not offer guarantees.

Disadvantages to consumers

  • Small scale traders usually sell goods at higher prices.
  • They can be slow at serving customers.
  • The goods they sell may not be fresh.
  • There is a limited choice of goods.
  • Do not normally offer guarantees.

Disadvantages to the retailer.

  • See the disadvantages of small businesses e.g. sole traders.

To access more topics go to the Commerce Notes page.

By |2017-01-17T11:20:59+00:00July 4th, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|Comments Off on Advantages and disadvantages of small scale retailers

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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