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