Retailers render the following services to wholesalers:

1. Helps in distribution:

Retailers provide to the wholesalers and manufacturers access to the market. They need not wait for the sale of goods. They are relieved of the problem of selling in small lots to a large number of consumers.

Retailers serve as the focal point of scattered demand. They help wholesalers and manufacturers in the distribution of goods among ultimate consumers who are scattered in different parts of the country.


2. Facilitate large sale operation:

Retailers enable wholesalers and manufacturers to carry on their business on a large scale by undertaking the sale of their goods to the ultimate consumers.

3. Sales promotion:

Retailers implement the sales promotion techniques (free gifts, cou­pons, prize contests, etc.) introduced by wholesalers and producers.


4. Personal selling:

Retailers are in direct touch with the consumers. They can persuade consumers to buy products. Retailers advise and guide consumers in the selection of goods. Retailers also help wholesalers and retailers in the introduction of new products.

5. Market information:

Retailers are in direct touch with consumers. They study the needs, tastes and fashions of consumers. They provide useful suggestions to wholesalers regarding qual­ity packing and pricing of products. As a result manufacturers can produce according to the requirements of consumers.


Services to consumers:

Retailers provide the following services to consumers:

1. Ready stock:

A retailer carries a ready stock of goods to meet the needs of consumers at all times. He supplies fresh goods according to their tastes and fashions. He prevents waste by selling goods in small lots and at the right time. Consumers need not keep stock of goods. They can buy goods as and when required in small quantities.


2. Wide choice:

The retailer maintains a wide variety of goods. Consumers can select goods according to their pocket and preferences.

3. Convenience of buying:

A retailer sells goods near the place of consumption. He provides most of the daily requirements of consumers at one place. This saves the time and money of consumers.


4. Credit facility:

Retailers sell goods on credit to regular customers. Consumers can make payment as per their convenience.

5. Education:

The retailer brings new products and new varieties of existing products to the knowledge of consumers. He also advises and guides them in buying goods.


6. Personal services:

Many retailers offer home delivery and after-sale service facilities to consumers. A retailer may also provide facility to return goods which are not found suitable within a limited period.