Advantages Of Co-operative Stores

There are various benefits or advantages of operating co-operative stores such as buying economy, no middlemen, quality goods at low price, distribution of dividend to the members etc.

The advantages of  co-operative stores can be described as follows:

1. Elimination of middlemen

Co-operative store eliminates middlemen from the channel of distribution. It purchases large volume of quality goods directly from producers and sells to its members at reasonable price. This protects consumers from the exploitation of middlemen.

2. Economy in buying

Buying economy is another major advantage of co-operative stores. Co-operative store purchases large quantity of goods directly from producers at reasonable price. So, the consumers get goods at reasonable price.

                                     Also Read: Disadvantages Of Co-operative Stores

3. Supply of quality goods

Co-operative store provides quality goods to its members. This sets consumers free from the exploitation and adulterated goods.

4. Cheap goods

Co-operative store sells goods to its members at relatively cheap price. It tries to eliminate middlemen by purchasing large quantity of goods directly from producers at relatively cheap price, operation cost is also low and burden of tax is also low on such stores. This is why, it becomes possible for co-operative stores to provide goods at cheaper price.

                         Also Read: Operation Method Of Co-operation Stores

5. Dividend

The members of a co-operative store can get dividend from the profit. Most of the co-operative stores distribute bonus or protection dividend to attract their members.

6. Social advantages

Co-operative store develops a feeling of mutual co-operation and help among its members. It also develops self-confidence and ability of self-reliance in the members. It teaches them lessons of community life as well as democratic culture. In this way, different economic, social and moral advantages can be acquired from co-operative store.


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