Internal Trade-Meaning and types

 Internal Trade includes the buying and selling of goods and services within the boundaries of the country. Payment for goods and services is received and made in a country’s national currency.

Meaning of Internal Trade:

 It means domestic trade, which includes the Wholesale trade and Retail trade within the national boundaries. In this trade very fewer formalities to be completed by the traders as compared to international trade. Very few formalities are completed by the traders as compared to international trade.

Local transport is used for moving/transfer goods and services from one place to another.

Types of Internal Trade:

It can be divided into two categories:

1. Wholesale trade:

It refers to the trade in which goods and services are sold at a large level and in large quantities. The owner of this trade is known as a wholesaler. He buys the goods from the manufacturer in bulk and sells them to the retailers in small lots. the wholesaler acts as the middlemen between the manufacturer and the retailers.

Services of wholesalers to Manufacturers:

a) Facilitates large scale production:

The wholesaler purchase goods in large quantities which enable the manufacturer to produce bulk and take advantage of large scale production. 

b) Helps in Marketing Function:

Retailers are located in different areas of the country. The wholesaler appoints salesforce to reach retail outlets to sell the goods.

c) Information provider:

The wholesaler has better knowledge about the preferences of the customers and he also collects information regarding the products of the competitors. The wholesaler also gives a suggestion about the product quality required by the customers. This type of information helps producers to produce the products according to the changing requirements of the customers.

d) Storage:

Wholesaler facilitates storage for keeping goods safe. He also takes responsibility for the storage of goods and bears risk regarding any loss.

2. Retail Trade:

This trade includes the sale of goods in small lots to the final consumption. A person who buys the goods and sale to the ultimate customer is known as a Retailer

The important points to remember:

a) It is the last link in the distribution channel.

b) Retail trade includes a small number of goods.

c) Retailer maintains personal relations with their customers and time to time provide necessary information about the products.

d) Retailers act as a middleman between customers and retailers.

e) Retailers are generally located in residential areas.

Services of retailers:

There are many services which are provided by the retailers :

 a) Availability of products:

The retailers provide different types of goods/ products according to the need of customers without any delay.

B) Provide information:

Retailers act as information providers. It means the retailer gives all necessary information about the products to their customers so that they come to know the benefits and usage of the products. 

c) Home Delivery:

Retailers provide one of the best services to their customers that is Home delivery of the products. With this facility, the customer feels prestigious and the retailer builds good relations with the customers for the long term.

e) Credit facility:

etailers provide credit facilities to their customers so that they can buy the products easily. In this, the retailer offers a small amount and short-term credit facility to the customers.

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