Question

Explain phases of trade cycle.

Answer 1

A trade cycle is the series of exchanges, between a customer and supplier that take place when a commercial exchange is executed.

A general trade cycle consists of the following phases:

1. Pre-Sales: It consists of two steps like Search and Negotiates. Customer searches for a required website for products to be purchased. In Negotiate step customer find a supplier who offers a good quality product at a cheaper price and then the customer agrees to the terms forwarded by the supplier.
2. Execution: This phase consists of Order and Delivery. Customer sends an order for the selected product and after processing the order, customer receives delivery of the product.
3. Settlement: This phase consists of an Invoice (if any) and Payment. Invoice means customer will receive a bill for the purchased product and after confirmation of received product, customer will pay for the same.
4. After-Sales: This phase consists of warranty and After-Sale Services. In the warranty period, customers will get all maintenance services for free or at minimum cost. After-sale services mean customers will do complaints (if any) about the performance of product and get maintenance service from the supplier.