Distributive Trade: Definition, Problems & Solutions

What is Distributive Trade

Distribution Trade refers to that aspect of commercial activities which is responsible for the commerct channelling of commodttles from the producers to the ultimate consumers.

Problems of Distributive Trade and Solutions

• There is hoarding of consumer goods largely due to inadequate supply of the goods (given demand for them).
• Poor transportation system often creates enormous problems of distribution of goods in the country.
• Operation of numerous middlemen in the chain of distribution with its attendant high prices of goods remains a problem in the country.
• Imperfect nature of the market i.e. inadequate market information is a problem of distributive trade in Nigeria.
• There are inadequate credit facilities in the system and these tend to hamper a smooth exchange of commodities.
• Administrative bottle-necks such as completion of forms for the procurement of foreign exchange, etc., often create enormous problems for the procurement and distribution of goods in the country.
• Inadequate storage facilities especially for farm produce create problems of unstable supply and prices for them.