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October 18, 2026

Retail and wholesale trade

ZIMSEC O Level · Commerce · Form 3

The chain of distribution

Manufacturer → wholesaler → retailer → consumer. Sometimes the wholesaler or retailer is cut out.

Functions of the wholesaler

Buys in bulk and breaks bulk; stores goods; gives credit to retailers; provides information both ways; may grade, pack and deliver; reduces the number of transactions for manufacturers.

Types: cash-and-carry wholesalers, delivery wholesalers, specialist wholesalers.

Functions of the retailer

Sells in small quantities, stocks a variety of goods conveniently near consumers, gives advice, may offer credit and after-sales service.

Types of retail outlets

  • Small-scale: tuck shops/spaza shops, market stalls, hawkers and vendors, kiosks.
  • Large-scale: supermarkets, hypermarkets, department stores, chain stores, franchises.
  • Non-shop: mail order, vending machines, door-to-door selling, online shopping (e-commerce) and mobile-money payments.

Trends

Self-service, branding, loyalty cards, shopping malls, online stores and home delivery.

Exam tip: When asked whether the wholesaler can be eliminated, explain who then takes over its functions.

Check yourself

  1. Give three functions of the wholesaler.
  2. State two advantages of supermarkets to consumers.
  3. Name two types of non-shop retailing.
Show answers
  1. Any three: breaks bulk, stores goods, gives credit, provides information, delivers, packs/grades.
  2. Any two: variety under one roof, self-service, lower prices, longer opening hours.
  3. Any two: mail order, vending machines, door-to-door selling, online shopping.

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