Meaning Of Trade | Types Of Trade | Benefits Of Trade

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Trade plays a virtual role in the economy of every country and the overall development of the economy is an outcome of the proper functioning of trade. Buying and selling of goods and services for Money's worth is a fundamental feature of trade and other is the transfer of ownership of goods and services from one person to another person the original form of trade was butter the direct exchange of goods and services and after invention and acceptance of common currency that is the money, the trade becomes greatly simplified. Trade means the process of exchange of goods and services trade refers to buying and selling goods and services with an object of earning profit and trade establishes a link between Producers and Consumers and it is carried out by buyers and sellers.

 

Internal trade: When the goods and services are purchased or sold within the country it is referred to as international trade that is purchasing goods from the door salesman local shop or exhibition a relational market Departmental Store or are all are the examples of the internal trade. When the buyers and sellers both are from the same country it is known as internal trade but trade between two States or cities of the same country is also considered as internal trade. As there is a gap between production and consumption there is a need to have proper channels of distribution and the channel of distribution is very important in the internal trade usually produces are situated in one place where is the consumers are scattered over a wide area. There is a big gap between producer and consumer. This gap can be short ended by the channel of distribution and channel of distribution helps to make products available at the right time place and in the right quantity through different intermediaries.

 

TYPES OF INTERNAL TRADE: There are two types of internal trade that is a wholesale trade and retail trade.

WHOLESALE TRADE When goods are purchased in large quantities from the manufacturer or producer for the purpose of reselling to retailers it is known as wholesale trade. The person who is engaged in wholesale trade is known as a wholesaler and wholesalers buys goods from manufactures and sells it to retailers so wholesaler is the buyer as well as the seller. Wholesale ladki plus stock of goods and therefore retailers can get the goods easily when the consumers ask for the goods regular supply of a wholesaler a shows the regular supply of goods to the retailers and therefore retailers are free from storing goods and retailers can supply goods to consumers as well as required by them. Risk bearing of the wholesaler bears price and market fluctuations large stock of goods therefore retailers are free from this risk financial support of wholesalers by way of credit facility discounts Excel Trump and such support increases the effect of working capital of the retailer.

 

RETAIL TRADE When goods are sold relative in small quantities to the unlimited consumer by wholesaler or distributor or dealer is known as retail trade and the person who is engaged in retail trade is known as a retailer. In the market, there is an existence of some sellers who are doing business at the local level or with the unlimited areas and such sellers are providing goods directly to unlimited consumers at responsible prices. The features of retailers are linked between the wholesaler and the consumers who operate in local Markets and the person deals in a wide variety of goods by investing Limited capital and the person establishes good relations with consumers and the person undertake less risk than wholesaler the person tries to satisfy the demands of different consumers but does not hold a large quantity of good at the same time.

 

Retailers are those retailers who do not have a fixed place of the fixed shop for the business they move from one place to another place carrying goods in hand-cut moving from the city or place anywhere they can sell easily and they require Limited capital for the ceiling that good and they move on streets by shouting loudly for announcing the names and prices of the goods they deal it in seasonal vegetable fruits some other items like household cheap articles bangles clips extra this Tailors do the business on foot parts of busy streets of cities and towns they prefer a crowd at places like Marketplace is bus stop railway station schools colleges and is set up temporary stalls on the outside and they sell items like handbags readymade garments toys electronic goods extra the prices of goods are reasonable and they do not change their place frequently. Nowadays online retail form of buying and selling of goods become more popular in the Indian scenario and this form is a very easy platform for the seller as less investment is required no need of storage and warehousing and no need of face-to-face interaction with customers the focus is on promoting service and quality and following are very popular examples of online retail form that is Flipkart, Amazon, ShopClues, Myntra, etc.

 

 

 

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