Features of Market Trading, Advantages And Disadvantages

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Title: Features of Market Trading

Hello welcome to another class on the topic: MARKET TRADING. In this class we are going to be looking at the meaning of market trading, Features of Market trading, the advantages and disadvantages of Market trading.

Table Of Content

  1. Definition of market Trading
  2. Features of Market trading
  3. The advantages of Market trading
  4. And also the disadvantages of Market trading.

See Also

Definition of Market Trading

Market trading is another method of retail trade in Africa. There are market where buyers and sellers are brought together to transfer ownership of goods. The market trader opens at a specific time of the day. They construct shades and stalls in a particular location to transact business.

In Nigeria for example, there are many markets in rural and urban areas. Examples are oshodi, mushin and Iyana Ipaja. There are many traders in the market, selling different products like foodstuffs, clothing and electronics.

Features of Market Trading

Here we take a look at the features of Market trading in Commerce:

  1. Availability of stalls: They always have stalls in markets places where they stock their goods.
  2. Specific timer for operation: They normally open at a specific hours of the day while others may operate on daily basis, e.g, Onitsha market.
  3. Specialization on the basis of types of goods: The traders in Market trading are usually zoned according to the types of goods. Which means there could be areas or zones for cloth sales, shoe sales, book sales, meat sales, electronic sales, etc, in a large market.

Advantages of Market Trading

Here we take a look at the advantages of Market trading in Commerce:

  1. Stock wide veriety of Goods: A wide variety of goods or wares are stocked by market traders.
  2. Saving of time: The market saves time for consumers since they do not need to move from one marketplace to another.
  3. Competition among the traders: Another advantages of Market trading is the competition among the traders. In Market trading, there are many dealers from each item, giving rise to competition and reduce the chances of any buyer paying arbitrary price.
  4. Low prices: Goods are cheaper at Market trading due to competition and most of the traders are wholesalers.
  5. Attraction to customers: Market trading attracts customers from both far and near places as a result of availability and low prices of goods.

Disadvantages of Market Trading

Here we take a look at the disadvantages of Market trading in Commerce:

  1. Problem of distance: Some market places could be far from some traders, e.g, Onitsha, ariara international markets or Alaba international market.
  2. Exposure to thieves: Some traders that are coming to market places could be attacked by thieves as they are dispossessed of their cash or goods.

Revision Questions

  1. What is market trading.
  2. What are the features of Market trading in Commerce.
  3. State the advantages of Market trading.
  4. And list the disadvantages of Market trading.
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