Small scale traders at Mbare Musika. Image credit

Small scale traders at Mbare Musika. Image credit

ZIMSEC O Level Commerce Notes: Retail Trade: Advantages and Disadvantages of small scale retailers

Advantages of small scale retailers to Consumers

  •  open for long hours or even during holidays
  • sell a variety of goods
  • cater for individual tastes
  • sell in very small units
  • may be specialists, selling one line goods
  • offer

-personal services

-delivery services

-after sales services

-informal credit to well known customers

Advantages to the Retailer

  • the retailer requires little capital to establish the business
  • the retailer benefits by having low overhead expenses
  • there are less legal formalities required to be observed
  • flexible to changes in market tastes

Advantages to Consumers

  • goods are usually sold at high prices
  • Slow in serving customers as they have to stand in queues
  • Goods sold may not be fresh
  • Choice of goods is limited
  • normally do not offer guarantees.

Disadvantages to consumers

  • Small scale traders usually sell goods at higher prices.
  • They can be slow at serving customers.
  • The goods they sell may not be fresh.
  • There is a limited choice of goods.
  • Do not normally offer guarantees.

Disadvantages to the retailer.

  • See the disadvantages of small businesses e.g. sole traders.

To access more topics go to the Commerce Notes page.