Retail purchasing and direct purchasing are two different consumer shopping options. Purchasing goods through retail outlets or buying directly from manufacturers each offer advantages and potential drawbacks to consumers. The pros and cons depend largely on the type of goods that are being sought for purchase.
Retail Sales Defined
Retail purchasing encompasses goods purchased at a retail outlet or store. Retail items make their way to consumers through several intermediaries, including wholesalers and distributors. This supply chain can often add to the base cost of retail items.
Direct Buying Defined
Direct buying refers to the purchase of goods directly from manufacturers or distributors, bypassing the supply chain customarily travelled by items sold in retail markets. Directly purchased goods and items are often available to consumers without additional costs for transport between intermediaries.
Advantages of Buying Direct
Buying direct from distributors or manufacture has several distinct advantages for consumers. The major advantage of direct buy purchases is reduced prices, given the absence of additional costs customarily affixed to retail goods for transport, warehouse handling, packaging, and retail display and marketing. Direct buy vendors also reduce costs through employing less staff members than retail outlets, as staff is not needed to arrange merchandise or maintain retail space.