Wednesday, 18 October 2017

Domestic Trade

Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail.

1.Wholesale Trade:- The wholesaler is one who purchases goods in large quantities from manufacturers and sells to retailers in smaller quantities. Wholesaling may be defined as "as a process of distributing goods from producers to retailers". Generally, manufacturers sell their goods to the wholesalers in large quantities. Wholesalers can specialise in a particular line of goods. They also deal in few allied lines of goods.

Generally, the persons of firm carrying on wholesale trade are mainly concerned with the distribution of different varieties of goods; for example, in 1] Conventional goods required for specific purposes such as drugs, medicines, stationery etc. 2] Goods like food grains, wheat, rice and edible oils etc. 3] Speciality goods such as electric products, gold, garments, fancy goods etc.

2.Retail Trade:- Retail trade is a part of home trade and is mainly concerned with the sale of goods in small quantities to the final consumers. The trader who provides goods in small quantities to the consumers is known as a retailer. The retailer is the last link in the chain of distribution.

People buy things for their daily need at retails shops, which are common in every locality. Retail trade cannot be operated on a uniform basis. A retailer carries on his trade in the local market.

No comments:

Post a Comment

The 10 Best Small Business Ideas

1.Art Gallery I see two routes to success in this business: 1) Focus on artists with well- established followings that you are comfortab...