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.
