As a reseller, retailers offer many benefits to suppliers and customers as we discussed in the Distribution Decision Tutorial. The major benefits for each include:
Access to Customers
For suppliers, the most valuable benefits provided by retailers are the opportunities they offer for reaching the supplier’s target market, building product demand through retail promotions, and providing consumer feedback. The knowledge and skills offered by retailers are key for generating sales, profits, and customer loyalty for suppliers.
Access to Product
For consumers, the most significant benefits offered by retailers relate to the ability to purchase products that may not otherwise be easily available if the consumers had to deal directly with product suppliers. In particular, retailers provide consumers with the ability to purchase small quantities of a wide assortment of products at prices that are considered reasonably affordable. Additionally, when it comes to retailers with physical locations (e.g., retail store), these are likely to be located near the retailer’s target market; thereby, enabling consumers to make purchases and take home the product much more conveniently than if they had to visit a product supplier’s facility or wait for an internet purchase to be delivered.