HOME TRADE / DOMESTIC TRADE / INTERNAL TRADE
Home Trade, also known as Domestic Trade or Internal Trade can simply be defined as the act of buying and selling of goods and services within the boundaries of a country.
In home trade, a single currency is used as means of exchange. Home Trade comprises wholesaling and retailing.
Types of Home Trade
- Retail trade
- Wholesale trade.
Retail trade is the re-sale (sale without transformation) of new and used goods to the general public, for personal or household consumption or utilisation. Retailing is the last link in the chain of distribution of goods and services. Its aim is to make goods available to the final consumers. Retail trade is carried out by a retailer
A Retailer is a person or a trader who buys goods in small quantities from the wholesalers and sells in smaller units directly to the final consumers.
Functions of The Retailer
- The retailer sells in small quantities to the consumers; s/he buys from the wholesalers and breaks the goods into unit to sell to the consumer.
- The retailer sells at convenient locations and hours: They sell to the consumers at any time of the day.
- Retailers stock varieties of goods: The retailers are exposed to wide range of goods, they sell all kinds of items at the same time, thereby affording a consumer an opportunity to get whatever s/he needs.
- Retailers render door to door services
- They can also sell on credits to the consumer due to the personal business relationship that exist between them
- They give advice to the consumers in making choices
- They deliver goods to customers on request
- Retailers give feedback the wholesalers and producers
- They provide after sales service to consumer
- They maintain close relationship with consumer.
Wholesale trade is a form of trade in which goods are purchased and stored in large quantities and sold, in batches to resellers, professional users or groups, but usually, not to final consumers.
Those who engage in wholesale trade are known as the wholesalers.
Wholesaler is a person who buys goods in large quantity or in bulk from the manufactures/ producer and sell in small quantities to the retailers or professional users or group
TYPES OF WHOLESALERS
- Merchant Wholesalers
- Agents, Brokers, and Commission Merchants
- Manufacturers’ Sales Branches and Offices