Thursday, 3 March 2022

Internal Trade

 The trend of trade in Morden times has increased and is being

progressing every day. No individual and country can claim to be
self-sufficient for producing all goods and services that they need.
The country might be producing some particular products in excess
while might need to fulfil the requirement of other products from
different regions. Thus every of the region are having their own
export and import trade. In this trade, they import the things that
they are not producing and export products that they are producing in

 On the basis of geographical location buyers and sellers, trade can
be majorly classified in two part:

Internal trade
External trade.
What is Internal trade?

Internal trade refers to the activity of buying and selling goods and
services with in the boundaries of a nation. It is basically the trade
between two regions within the same nation, or two companies within
the same region.

What is External trade?

The external trade refers to the activity of exchanging goods and
services between two or more nation. It involves the import of the
products that the nation is not producing sufficiently for their
consumption and export the products that the country is producing in

In this article, we will discuss in detail of internal trade and how it works.

Internal trade

Internal trade is broadly categories in two part:

Retail trade
Wholesaler trade
Wholesale trading is concerned with the activity of those person or
establishment which sell to retailers and other merchants. The
wholesaler also includes those who sells raw materials to the
companies for the industrial as well as for the production purpose.

Wholesalers do not have direct contact with the ultimate end users.
Instead, they serve as an important link between manufacturers and
retailers. The wholesalers that sells raw material makes the companies
and the industries capable for the production of the final products.

The producer companies that purchases raw material and produce final
products are also wholesaler companies. The difference is that they
sells their final products directly to the retailer that further have
direct contact with the end user customers.

The raw material wholesaler sells the raw material to another producer
wholesaler. Further the producer wholesaler utilize the raw material
for the production of the final product. This wholesaler further sells
their final products in bulk to either the retailer or the middleman
wholesaler. The middle man wholesaler purchases the final products in
bulk and then sells them to different retailers.

There are many activities under the wholesale trading that includes
grading of product, packing into the small lots, storage,
transportation, promotion, collection of market information and many
more. Following are the different services in the wholesale trading:

Services of wholesalers
Wholesalers provide various services to manufacturers as well as
retails and provide immense help in the distribution of goods and
services. They are the one to make the product available at place
timely where they are required for consumption. The various services
of wholesalers to different section are discuss below.

Service to manufactures
The raw material wholesaler are those who provides this service. The
raw material wholesaler supplies the raw material to the manufacturer

First the retailer seeing the market trend informs the middleman
wholesaler about the increase demand for the particular product. The
middleman wholesaler further transfer this information of the
increased demand to the manufacturing wholesaler. The manufacturer in
order to increase their production for fulfilling the increased demand
contacts the raw material wholesaler for the raw material. The raw
material wholesaler then sells the raw material in bulk to the

Service to middleman wholesaler

The manufacturer after producing the final products, sells it in bulk
to the middle man wholesaler. The middle man wholesaler after grading
the products, sell them under their own brand name.

Service to retailers

The middle man wholesaler then sell the products to the retailers
which furthers sell the products to the final customers. There are
immense services which are provided to retailers by the wholesalers.

The wholesalers helps retailer in maintaining the adequate stock of
varied commodities and thus making them offer wide range of variety of
products to their audiences.

Retail trading
A retailers are those that used to deal directly with the audiences.
The retailers make purchase in bulk from the wholesalers and provide
services to consumers. Retailers perform the final stage in the
distribution of goods and services for reaching the end user

Retailers use different sources for selling the product including the
online mode, door to door services, offline stores and many more.
Following are the services provided by retailers:

 Services to manufacturers and wholesalers
The major services of the retailer is to make the products of the
manufacturing wholesaler to the consumers.

The retailers deal with the end user customers directly and sell the
products for all, manufactures and wholesalers and self benefit as

Further, retailers are sources for collecting market information
regarding the increase trend and then transfer the information to
higher level wholesaler and manufacturers.

Retailers provide services to consumers
Only retailers are responsible for dealing with and fulfilling the
consumers’ demand. The most important service of a retailers for
consumers is to maintain the regular availability of various product
produced by different dealers.

These are retailers who demonstrate the features of the product to the
final consumers and provide the information of new arrival of new
product to consumers.

One of the major services of the retailer includes offering the
conveniences in buying to the final consumer. The retailers are
generally located near to the residential areas and stay open for long
hours, thus offering the convenience of buying to the final customers.

Also, they are the one that offers the wide variety of similar product
from different manufacturers to the end users. This helps the
consumers in making their right choice depending on their budget,
required features, best quality, and many more factors.

The bottom line
So, these are the information about internal trade business that how
trade works in nation and contribute in gross domestic income.

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