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Generally, payment has to be made in the legal tender of the country or any other acceptable

currency.

Internal trade can be classified into two broad categories viz,

(i) Wholesale trade and
(ii) Retail trade.

Generally, for products, which are to be distributed to a large number of buyers who are

located over a wide geographical area, it becomes very difficult for the producers to reach all
the consumers or users directly. For example, if vegetable oil or bathing soap or salt produced

in a factory in any part of the country is to reach millions of consumers throughout the country,

the help of wholesalers and retailers becomes very important. Purchase and sale of goods and

services in large quantities for the purpose of resale or intermediate use is referred to as

wholesale trade. On the other hand, purchase and sale of goods in relatively small quantities,
generally to the ultimate consumers, is referred to as retail trade.

Traders dealing in wholesale trade are called wholesale traders and those dealing in retail trade

are called retailers. Both retailers and wholesalers are important marketing intermediaries who
perform very useful functions in the process of exchange of goods and services between

producers and users or ultimate consumers. Internal trade aims at equitable distribution of

goods within a nation speedily and at reasonable cost.

WHOLESALE TRADE

As discussed in the previous section, wholesale trade refers to buying and selling of goods and

services in large quantities for the purpose of resale or intermediate use. Wholesaling is

concerned with the activities of those persons or establishments which sell to retailers and
other merchants, and/or to industrial, institutional and commercial users but who do not sell in

significant amount to ultimate consumers. Wholesalers serve as an important link between

manufacturers and retailers.
They enable the producers not only to reach large number of buyers spread over a wide

geographical area (through retailers), but also to perform a variety of functions in the process

of distribution of goods and services. They generally take the title of the goods and bear the