Retailer
What Is a Retailer?
A retailer is a person or business that sells products directly to consumers. Sales can occur in physical stores, online, or at temporary locations such as markets or events.
If you sell products to customers for personal use rather than resale, you are operating as a retailer.
Retailers can face product liability and other claims even if they did not make the products they sell. Selling the product is often enough to be included in a claim.
Knowing your role in the supply chain helps you understand your responsibilities and choose insurance that fits how your business actually operates.
How Do Retailers Fit in the Supply Chain?
Retailers are typically at the tail end of the supply chain. Most products move through the chain in stages:
- Manufacturers make or assemble products
- Wholesalers buy products in bulk and sell them to businesses
- Retailers sell products directly to end consumers
In short, manufacturers make products, wholesalers move them in bulk, and retailers sell them to everyday customers.
What Is a Retailer vs a Wholesaler vs a Manufacturer?
Retailers focus on selection, display, and sale to the public.
Wholesalers focus on bulk purchasing and distribution.
Manufacturers control product design and production.
All three parties can be named in product-related claims, even if a retailer or wholesaler didn’t design or manufacture a product. Retailers are often included because they are the direct point of contact with the customer.
Selling a product makes you part of the product’s supply chain, and that brings liability for your retail business.
Why Does Being a Retailer Matter for Insurance?
Retailers face risk tied to both their space and the products they sell. Common risks include:
- Customer injuries
- Damaged property
- Product defects
- Mislabeling or missing warnings
- Product recalls
Retailers may also take on more responsibility when selling private-label or white-label products. When your brand appears on the product or packaging, you may be treated more like a manufacturer for some risks.
Your insurance needs ultimately depend on how, where, and what you sell.
| Business Situation | Are You a Retailer? |
|---|---|
|
Sell products to walk-in customers |
Yes |
|
Sell through your own website or an online marketplace |
Yes |
|
Sell products in bulk |
No |
|
Make and sell your own products |
Yes |
|
Rebrand or private-label goods under your name |
Yes |
Questions Retailers Should Ask About Risk and Coverage
- Where do my products come from?
- Do I sell only to consumers, or also to other businesses?
- Does my business name or brand appear on the product or packaging?
- Where do I sell: in-store, online, at events, or all three?
- What happens if a product injures someone or damages property?
- Do I have product liability coverage in place?
- Do supplier contracts address indemnity and insurance?
Additional Resources
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