What is the ineffectiveness of informal trading

Ineffectiveness of informal trading may be because of many factors. Sometimes in informal trading, some traders are branded as scammers thus consumers or buyers tend to doubt on the quality of the goods and services. Second, since everything is not in formal set- up, once you get yourself tricked, you do not have enough evidence to counter your seller thus this will lead to pay large costs by going through costly system. Another is, due to inconsistent location of the informal traders, the supposedly returning patronage will be hindered in coming back or will have a hard time in looking for the place where the business is usually situated. It is said that the trading location plays a significant role in any business.

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