Open Market Sellers

Open-air market Traders are a type of small-scale retailer without shops

 Open-air markets are places set aside by the government through the local authorities where people meet to buy and sell goods.

 Traders selling similar commodities are allocated a special area. Such markets are open on particular days of the week. The variety of goods sold here is wide and includes agricultural produce, clothing, household items, animals, foodstuffs and even furniture.

 The traders move from one market to another depending on the various market days.

Advantages of open market traders

  • They require a small amount of capital to start and operate their businesses hence easy to start and operate.
  • They are convenient since they take goods to the customers within their reach hence customers access goods with ease.
  • They incur low costs of doing business since they do not require much licensing to operate  
  • Most of their goods are low-priced and hence more affordable to customers therefore more sales revenue.
  • The business is flexible. It is easy to change from one business to another also it possible to sell two different products at the same time.
  • They require few legal requirements hence easy to start for an entrepreneur.
  • The financial risks involved in these businesses are minimal since they use little capital to start hence lower risks of loss
  • They do not suffer bad debts since they sell on a cash basis hence they can continue to be in operation in the near future
  • They interact at a personal level with the customers and can convince them to buy their goods hence the business is highly persuasive.

Disadvantages of open market traders

  • It is tiring for traders to move from place to place especially if the goods are heavy, bulky and the distance covered is long
  • The traders face stiff competition from other traders with more resources and with established businesses.
  • They offer a limited variety of goods hence customers’ choice is limited to available goods hence hindering the customer’s sovereignty.
  • They are affected by unfavourable weather conditions; heavy rainfall forces open market traders to close trading and also sunny weather leads to heavy sweating and fatigue.
  • Lack of permanent operating premises denies them a chance to develop permanent customers
  • They face a lot of certainties, especially in terms of a steady flow of income due to fluctuating customer’s choice tastes and preferences.
  • They sometimes sell defective or low-quality goods because customers expect to pay little money for them.

Thanks for reading this article. Have a fruitful day, won’t you!!!

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