What are the advantages and disadvantages of retail outlets?

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Businesses use different tools to make their products / services available to customers. Obviously, it is important to choose a marketing tool that meets the market, but is aware of alternatives that can access other markets.

One of the most common and most popular distribution methods starts with a retail business. This general term covers everything from the market to the big supermarkets and hypermarkets. The most important advantages and disadvantages of selling through our own retail store are listed below.


Participating in a retail store means you have a physical presence in this area. This allows customers to easily identify your business. It also helps to create trust in a physical store.

You can rely on the moving crowd. In addition to high visibility, regular buyers are able to recognize the business after a few weeks even if you are new. Think about it, you've just started a business in a new area. Regular buyers are twice as often twice a week in the area. They would have seen your business eight times ten times in a month. By now you know her presence.

Retail is a cash business. This means that customers pay cash or credit cards to buy products or services. Unlike some businesses that use a 7-day or 30-day period. Cash business reduces bad debt risk

The retail sales process is much shorter and easier compared to other businesses. The customer is put in a shop, the staff will serve them, the customer decides to buy and pay. The process is quite straight forward.


Developing a retail store requires high capital costs. You have to buy the kits, set the shelves, renew the shop, and so on. High capital spending also means that the business is at greater risk.

Retail is a much more passive business. Instead of doing business, you're basically staying in business, waiting. You can not find out and sell more sales that are more active when you buy your customers.

Not prone to any changes that may occur on the market. For example, neighborhoods may be reduced, restriction of parking restrictions, their market can "move", etc.

Consider the benefits and disadvantages of making the most appropriate decision for your distribution channel

Source by sbobet th

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