What is a retailer?
A retailer is a company that purchases products from different suppliers and then resells them to individuals. It is a merchandise distribution activity that involves purchasing products in large quantities from manufacturers, then reselling them directly to individuals or other smaller businesses. A retailer can be a physical store or an online business and can offer a very wide variety of products for sale, such as food or clothing, for example.
Retailer’s operating methods
The physical store
A retailer can sell its products in a physical store. Customers then go to this store, browse the shelves and purchase the products directly on site.
Online selling
A retailer may also offer its products for sale through a merchant website. Customers can therefore connect to the website and purchase products in order to receive them at home or at a relay point.
Distance selling
A retailer can also sell its products remotely, that is to say by telephone or by mail. Online selling is a form of distance selling.
Direct selling
A retailer can sell its products by going directly to the customer (door-to-door) or by organising door-to-door sales by appointment.
Dropshipping
A retailer can sell its products by going directly to the customer (door-to-door) or by organising door-to-door sales by appointment.
The marketplace
A retailer can finally offer its products for sale on an online marketplace
Advantages of the retailer
Profit
The retailer makes a good profit by selling products at higher prices than when buying them.
Sales volume
A retailer has the possibility to sell products il large quantities, thus allowing it to achieve a high turnover.
The choice of products
The retailer generally offers a wide selection of products, which helps attract a very large and varied audience.
Customer interaction
Depending on the operating mode(s) selected by the retailer, he has the possibility to interact directly with his customer. This is a definite advantage with the objective of discerning the real needs of your customer and retaining them over the long term.
Flexibility
The retailer can easily face market upheals because he is free to adjust his prices, his offer and his sales area.
Become a retailer
Study the market
Before becoming a retailer, an in-depth market analysis is necessary to obtain information on competitors, products, services and current market trends.
Choosing products and/or services
Once the market has been identified, it is appropriate to select the products and/or services that will be offered for sale. These can be physical products or services, online onboth simultaneously.
Develop a business plan
Developing a business plan is essential to become a retailer. Indeed, it is necessary to define operating costs, estimated revenues, necessary investments as wel as adequate sources of financing.
Set a physical location and/or online
If the choice is to open physical store, you must then study the possibilities concerning the location of the sales area. Regarding online sales, it is imperative to study the question of opening an online store and/or selling via existing marketplaces.
Obtain the appropriate permits and licenses
Certain arrangements must be made regarding the possession of permits and licenses: in fact, is it not easy to open and operate a business knowing that requirements vary depending on the activity, location and the nature of the business.
Finally, other steps must also be taken into consideration such as the selection of reliable suppliers as well as the promotion of the company, once operational.