Retailing

Revise Retailing for Commerce 7100 (O Level) — revision notes, 160 practice questions and instant AI marking.

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Cambridge O Level Commerce 7100

Retailing

The big idea: The retailer is the last link in the chain: it sells to the final consumer. Retailers range from a trader with a cart to a hypermarket and an online store, and they compete using selling techniques and digital technology. Ecommerce has changed traditional shops, but has not replaced them.

Summary — What This Chapter Covers

Usually small-scale: itinerant retailers, vending machines, independent retailers, street markets, speciality shops. Usually large-scale: multiple chain stores, supermarkets, hypermarkets, department stores. Online retailers range from one-person sellers to global businesses.
Each type has its own features, advantages and disadvantages.
The small-scale retailer often survives through personal service, flexible opening hours and additional services.
Selling techniques: branding, own brands, logos, packaging, self service, after-sales service, barcoding, direct mail, loyalty programmes, informal credit and cash on delivery.
Digital retail trends: omnichannel and multi-channel retailing, cashless stores, EPoS, click and collect, self-service checkouts, subscription commerce, QR codes, VR showrooms, dropshipping and apps.
Ecommerce brings 24/7 selling, more customers and lower store costs, but also delivery, training, warehousing and website costs.

1. Types of Retailer

Syllabus 2.3.1 · Papers 1 & 2

From a market stall to a hypermarket

Definition · Retailer A business that buys goods (usually from wholesalers or manufacturers) and sells them in small quantities to the final consumer.

Usually small-scale retailers

Type	Features	Advantages	Disadvantages
Itinerant retailer	No fixed shop; travels from place to place (door to door, on a cart, van or bicycle)	Low costs (no rent); goes to the customer, useful in rural areas	Small range; limited stock; affected by weather; customers cannot find the trader easily to complain
Vending machine	Automatic machine selling snacks, drinks or tickets; payment by coins, card or phone	Sells 24 hours a day; no staff needed; can be placed where people wait	Very small range; machines break down or are damaged; must be refilled often
Independent retailer	Single shop owned by a sole trader or family, often a local convenience store	Personal service; convenient, near homes; flexible opening hours; may offer informal credit	Higher prices (cannot buy in bulk); small range; owner works long hours; strong competition from supermarkets
Street market	Many stalls in an open space or covered hall on set days	Low rents; low prices; fresh local food; customers can bargain	Exposed to weather; open only on certain days; quality may vary
Speciality shop	Sells one type of product (shoes, sports goods, jewellery, phones) in depth	Wide choice within one line; expert staff advice; after-sales service	Depends on one product type; often higher prices; competition from online retailers

Usually large-scale retailers, and online retailers

Type	Features	Advantages	Disadvantages
Online retailer	Sells through a website or app; goods delivered or collected. Can be any size, from one person selling from home to a global business	Open 24/7; reaches customers anywhere; no costly shop premises; huge range	Customers cannot see or touch goods; delivery costs and delays; many returns; needs website and IT security
Multiple chain store
Supermarket
Hypermarket

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Also in the full note

Ways to attract and keep customers
Technology at the till and beyond
Gains and costs for retailers
Retailing in longer answers

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Retailing

Retailing

From a market stall to a hypermarket

Usually small-scale retailers

Usually large-scale retailers, and online retailers

Past papers that test Retailing

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