Internal

Trade
Internal Trade
Internal Trade refers to buying and selling of
goods and services within the geographical
limits of a country.
Features-
•The buying and selling of goods takes place
within a country.
•Payments are made and received in the
home country.
•There are less formalities to be completed.

Types of internal trade

1. Wholesale trade
2. Retail trade
Wholesale Trade
Wholesale trade is buying and selling of goods and
services in huge quantities.
They serve as a bridge between retailers and
manufacturers.

1.Services to Manufacturer
•Facilitating large scale production
•Bearing risks
•Expert advice
•Storage
2.Services to Retailer
•Availability of goods
•Marketing support
•Grant of credit
•Risk sharing
 Retail Trade
It refers to sale of goods in small lots to the final
consumer.A retailer buys goods from wholesaler and sell
them to consumer
1.Services to wholesaler and manufacturer
Helps in distribution of goods
Personal selling
Enabling large scale of production
Helpful in promotion
Collecting the market information
2.Services to consumer
Regular availability of product
Wide selection
Demonstration and after sale service
Home delivery
Convinience in buying
 Retail Trade

Itinerant trader Fixed shop trader

Hawkers and Peddlers
Cheap Jacks Large Scale
Small Scale Departmental
Periodic Market Trader Store
Street Vendor Multiple/Chain
Store
Mail Order
Second/ Second Hand Street Stall General Shops Retailing
Speciality Shop Goods Shop Automatic
Vending Machine
 Itinerant Trader
These retailers move from door to door, selling goods to
consumer,with no fixed place of business.They operate on a
small investment and limited stock.

1 2 3 4
Hawkers and Peddlers Cheap Jacks Periodic Market Street Vendor
Trader
Hawkers carry goods on They do business in These traders sell their These traders display
carts/bicycles while rented shops or sheds, goods on periodic market- their goods in busy
pedlars on their back or shifting from one weekly, monthly or street
head from door to door locality to another.They annually.They also occupy corners/pavements near
in residential areas to sell their goods in fronts of main shops on railway stations,bus
sell their goods. temporary sheds during holidays and do thriving stands etc.
festivals. business.
 Fixed Shop Traders
They carry on business in a fixed building either owned or rented. Selection
of site is made after considering factors like line of business,nature of
customer etc.
Small Scale-
a) General Shops: Set up in residential areas,deals in a variety of products needed by the
locals.They also offer credit facility and home delivery.

b)Street Stall:These are fixed retail shops erected in the minimum space available at street
corners.Travelling public usually depend on them.

c)Second Hand Goods Shop:Second hand books,furniture,clothes and other household items are
bought through their agents.The poorer section of society buys second hand goods from them.

d)Second/speciality Shop:They specialise in a line of products.They are found mostly in big

shopping centres in towns and cities.
 Large Scale Traders
a)Departmental Store- It has a number of departments under one showroom for different
variety of products.These are managed by general manager.
Features- 1)Central location
2)Variety of products
3)Elimination of middlemen
4)Deals in many brands

b)Multiple/Chain Store- It refers to number of shops located in different parts of the city
but owned and managed by a single organiser.Ex-Lenskart,Puma etc.
Features- 1)Single brand
2)Standardized quality
3)Uniform price
4)Uniform infrastructure

c)Mail Order Retailing- In this system sellers advertise their products through mail publicity
by sending circulars,booklets etc.Customers place their order by post.
d)Automatic Vending A vending machine is a new type of direct retailing.In this system
Machine- shopkeeper is not available for selling the product.Thr buyer inserts a
coin/token in the machine and receive a specific quantity of product from
the machine according to the price.
 Goods and Service
Tax(GST)
GST is a comprehensive indirect tax which has replaced many indirect tax
in India.It is a single,unified indirect tax levied on the supply of goods and
services across India.It has four tiers of taxation:5%,12%,18% and 28%.

There are three types of GST-

1)CGST-Central Goods and Service Tax
2)SGST-State Goods and Service Tax
3)IGST-Intergrated Goods and Service Tax
THANK
YOU