Small retailers frequently lack the financial capacity or the required order volume to purchase inventory directly from manufacturers. Manufacturers often set minimum order quantities or require bulk purchases that exceed the financial resources and storage capabilities of small-scale retail businesses, forcing them to rely on wholesalers.

A chain store, or multiple shop, consists of a network of retail outlets owned by a single company that sells identical products under a common brand name. Bata operates through a vast network of standardized retail outlets, which is the classic definition of a chain store system.

A truck wholesaler, also known as a truck jobber, performs both selling and delivery functions. They carry a limited line of semi-perishable merchandise (such as milk, bread, or snack foods) and sell them for cash as they make their rounds to retail stores. This model is essential for ensuring rapid delivery and maintaining the freshness of products that have a short shelf life.

A trader is an individual or entity engaged in the buying and selling of goods or services for profit. When a person deals specifically in ready-made items, they act as an intermediary between the manufacturer or wholesaler and the final consumer. Unlike a manufacturer who creates the product, a trader focuses on the commercial exchange and distribution of finished goods to meet market demand.

A tailor operating a small, personally owned shop is considered an independent retailer. They maintain full control over their business operations, pricing, and customer service without being part of a larger chain or franchise, thus operating autonomously within the retail market.

Retailers act as the final link in the supply chain, bridging the gap between wholesalers and end-users. Their primary function is to break bulk, meaning they purchase goods in large quantities from wholesalers or manufacturers and sell them in smaller, convenient quantities that meet the immediate needs of individual consumers. This service adds value by providing accessibility and convenience to the buying public.

Wholesalers perform the essential function of breaking bulk by purchasing large quantities of goods from manufacturers and dividing them into smaller, manageable units that are then sold to retailers. This process allows retailers to stock a variety of products without needing to purchase massive, individual shipments directly from the factory.

Wholesalers and retailers are distinguished by their target customers. Wholesalers typically sell to other businesses or retailers for resale, while retailers sell directly to the final consumer. The volume of the purchase is secondary to the nature of the buyer in this classification.

A factor is a mercantile agent who is entrusted with the possession of goods for the purpose of sale. Unlike a broker, who merely negotiates contracts, a factor has physical or constructive possession of the goods and can sell them in their own name, making them a specialized agent for sales.

Retail shops serve the final consumer and are considered part of a large group market because they cater to the general public rather than specialized or limited segments. They act as the final link in the distribution chain, connecting manufacturers and wholesalers to a broad, diverse customer base.