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Retailing is the selling of small quantities of goods to the final consumer. This is done in various ways. The most common is through a retail store. A retail store may be one small salesroom or a gigantic department store. In a small shop a sales person often has to perform other duties besides selling. He may have to decide when to order new goods and which items are needed, and usually he must be able to operate a business. However, as a rule, sales clerks in department stores are not concerned with such matters. Their main task is to wait on the customers and to handle cash efficiently.

A well-known type of retailing is door-to-door selling. It is mostly small articles, such as brushes and cosmetics, which are sold this way, because the salesman has to be able to carry them around. Or he may sell only one type of merchandise, like a sewing machine or a vacuum cleaner. One advantage of door-to-door selling is that the salesman can demonstrate his articles, and the housewife can see how they work right in her own home. Besides, it saves her from a trip to the store.

Mail order selling is another kind of retailing, in which both selling and buying are done through the mail. In this case the role of the salesman is taken over by a mail-order catalog that lists all the items offered for sale.

Wholesale Selling

It would be very costly for the manufacturer to ship many small orders to different retail stores. But a storekeeper does not have space enough to store large orders. As a result, another type of sales business has developed that of wholesaling. The wholesale merchant buys goods from the manufacturer in large whole lots and sells them in small lots to individual retail businesses.

Wholesale companies also, vary in size and service. Some companies store the goods in a single warehouse and send out trucks to deliver them. Others own several warehouses, where the merchandise is picked up by the retailers. Still others, called agents or brokers, neither store nor deliver goods. They only combine retailers' orders for the manufacturer and then arrange for shipment others, called agents or brokers, neither store nor deliver goods. They only combine retailers' orders for the manufacturer and then arrange for shipment directly from the manufacturer to the retailer. Some very large concerns offer every possible service, from storing huge amounts of goods over long periods of time to extending long-term credit to their retail customers. They may even do advertising for the manufacturer.

Most selling may be divided into the major groups of retail and wholesale selling. But there are other types of selling, such as the selling of health, life, or home insurance plans, the selling of subscriptions for magazines or book clubs; or the selling of stocks and bonds through a broker.

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