FAQ About Retail

How do retailers work? Retail
one year ago | gizem

How do retailers work?

Retailers rely on a system that supplies them with goods to market to consumers. Relationships should be built with businesses operating within the retail supply chain to ensure they have the products they want to inventory and sell. The retail supply chain includes wholesalers, manufacturers, retailers and consumers. The wholesaler is directly subordinate to the manufacturer, and the retailer to the wholesaler. Key people in creating the retail supply chain are:

  • Manufacturers: They produce goods using machinery, raw materials and labor.
  • Wholesalers: They buy finished goods from manufacturers and sell them in large quantities to retailers.
  • Retailers: They sell small quantities of goods to consumers at a theoretically higher price than the manufacturers' suggested retail price.
  • Consumers: They purchase products from the retailer for personal use.

Retailers are set up to sell directly to consumers in one way or another. It's not just their decisions about physical and digital locations. It also includes decisions about how to market products and connect with customers. This is how the retail system always works. Manufacturers design and manufacture their goods and products. However, they rarely market and sell them directly to customers. Being able to produce goods is very different from being able to sell goods to consumers. That's why most manufacturers stick to production.