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| (a) Collection of goods: | 1. A wholesaler sells goods to different retailers. In this way, he also performs the function of distribution. |
| (b) Storage of goods: | 2. A wholesaler collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage. |
| (c) Distribution: | 3. A wholesaler collects goods from manufacturers or producers in large quantities. |
| (d) Financing: | 4. The wholesaler buys finished goods from the producer and keeps them in the warehouses, till they are sold. Therefore, he assumes the risks arising out of changes in demand, rise in price, spoilage or destruction of goods. |
| (e) Risk taking: | 5. The wholesaler provides financial support to producers and manufacturers by sending money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the wholesaler acts as a financier. |
Ex.3.8. Choose the functions of retailers for each paragraph:
All retailers deal with the customers of varying tastes and temperaments. Therefore, they should be active and efficient in order to satisfy their customers and, also, to induce them to buy more. Let us see what the retailers do in distribution of goods.
(i) ________________________: Retailers buy and assemble varieties of goods from different wholesalers and manufacturers. They keep goods of those brands and variety which are liked by the customers and the quantity in which these are in demand.
(ii) ________________________: To ensure ready supply of goods to the customer retailers keep their goods in stores. Goods can be taken out of these stores and sold to the customers, as and when required. This saves consumers from botheration of buying goods in bulk and storing them.
(iii) _______________________: Although retailers mostly sell goods for cash, they also supply goods on credit to their regular customers. Credit facility is also provided to those customers who buy goods in large quantity.
(iv) ______________________: Retailers render personal services to the customers by providing expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers. They also provide free home delivery service to customers. Thus, they create place utility by making the goods available when they are demanded.
(v) _______________________: The retailer has to bear many risks, such as risk of:
(a) fire or theft of goods
(b) deterioration in the quality of goods as long as they are not sold out.
(c) change in fashion and taste of consumers.
(vi) ___________________: Retailers display different types of goods in a very systematic and attractive manner. It helps to attract the attention of the customers and, also, facilitates quick delivery of goods.
(vii) ____________________: Retailers provide all information about the behaviour, tastes, fashions and demands of the customers to the producers through wholesalers. They become a very useful source of information for marketing research.
Functions:
| 1. Buying and assembling of goods |
| 2. Credit facility |
| 3. Display of goods |
| 4. Personal services |
| 5. Risk bearing |
| 6. Storage of goods |
| 7. Supply of information |
Ex. 3.9. Fill in the gaps with the proper verb forms. Choose the verb from the box.
| Adapt, Appear, Be, Benefit, Innovate, Know, Offer, Reinvent, Seize, Transform |
Retail __1__ one of the first and most influential sectors to contribute to digital transformation of the economy. Some e-commerce giants, such as Amazon or eBay, __2__ to meet shoppers’ new lifestyles and expectations, but millions of small-and-medium businesses __3__ the opportunities of the new digital world. Traditional retailers and catalogue merchants __4__ their businesses into “omnichannel” operations. New business models and innovative approaches __5__ every day. Consumers __6__ from more choice, price transparency and more convenience in paying and delivery. Is this the end of shops as we __7__ them? Not at all. Shops on the high street, city malls or suburban shopping areas __8__ themselves. To survive and grow, they __9__ even better services and shopping experiences, combining the advantages of physical and digital retail.
Wholesalers also rapidly __10__ to the digital economy as well, by innovating in their B2B service offering to clients.
Ex. 3.10. Put words in the following sentences in the correct order.
1. trade, Those, of, sell, are, part, a, to, firms, wholesale, that, businesses.
2. Wholesaling, is, in, goods, an, of, overall, step, the, intermediate, distribution.
3. wholesalers, retailers, wholesaler, of, organizes, to, goods, the (2), for, transaction, resale, other, or, A.
4. from, to, goods, a, and, Wholesalers, or, other, operate, office, warehouse, facility, businesses, sell.
5. wholesalers, not, to, do, Traditionally, market, the, their, public, services, general.
