Types of Trade

Buying and selling goods and services in a country is called international trade or home trade. It includes two forms of trading- wholesale and retail

1. Wholesaler trade: the goods that are produced in the factories are first bought by traders known as wholesale traders. The wholesale trader picks up the goods from the factory or forms in bulk. For example, a wholesale trader in grain in quintals and not in a few kilos. She /he stores these large quantities in her/his godowns. There are wholesalers traders for all kinds of goods they sell their goods to other traders in markets known as wholesale traders.

2. Retailers: In the wholesaler market, goods are sold in bulk to traders known as retailers. They buy these goods to sell at their own shops. These shops could be your neighbourhood shops, shops in the complex or the weekly shops it is from the retailers that the final customer buys the goods

Retailers are not just shopkeepers selling products in a shop, there are various types of retailers in India. There are two categories of retailers.

1. Itinerant retailers & Fixed shop retailers

Retailers who do not have a fixed place from where they operate are called Itinerant retailers. They move from place to place in search of customers. Retailers who have a fixed place where they sell their goods are called Fixed shop retailers. They deal in different products ranging from electronics goods to eatables.

By market, we usually mean a marketplace that is a place where the numbers of buyers and sellers meet and conduct buying and selling activities. It is a system that enables buyers and sellers to exchange goods and services. It may be an open area as a building where they meet to do this. This action of buying and selling goods or services is called Trade.