In the business world, of course, you often hear the terms Distributor Supplier Agent Reseller and Dropship. But do you know the difference between all that? I'm sure you do not know yet, so you got here. Okay in this article will be discussed what is a distributor, what a supplier, what is an agent, what is a reseller and what is dropship, and what to do with business.
1. DistributorDistributors are parties who purchase products directly from the manufacturer and resell them to retailers/stores and can also directly to consumers. So, these distributors only take ready-made products and ready for use or ready for sale. The distributor is the first network after the manufacturer. Can be in the form of individuals or companies that buy products directly from manufacturers directly with a very large amount.
2. SupplierA supplier is a support group of business activities that sell goods continuously for production activities. Generally, they sell it in the form of raw goods, such as wood suppliers, fabric suppliers, building material suppliers, and others concerning pre-production goods.
3. AgentThe agent is intermediaries, can intermediary manufacturers can also intermediary distributors who will later sell goods to retail stores. They function more as an intermediary between distributors and retailers.
The capacity of the goods is usually also smaller and their income is usually from the sales commission or the price difference purchased at the distributor and the price set to the retailer.
4. ResellerResellers are the ones who will later sell the goods directly to consumers. This reseller is a bit like an agent but has its own authority in terms of selling. They buy the goods and sell directly to consumers without the need of the duties of distributors or manufacturers.
Usually, the reseller will buy goods from the manufacturer with a cheaper price with a certain amount. Furthermore, the reseller will sell it directly to the consumer by taking profit from the price difference. Resellers need space/place to store goods to be sold.
5. DropshipDropship in its function is almost or can be said to be the same as a reseller, only if the reseller sells goods in real physical form if dropship only sells with sample inscription or picture display. So do not directly sell physically. If later there are parties who want to buy goods offered by dropship, then dropship can take goods from manufacturers, distributors, agents and can also from resellers.
In general, these drop shippers run online with capital using the marketplace or use their own website. because this way is considered very effective and cheap. Both are equally profitable. One side of the product sells fast, on the side of the drop shipper can also make money by simply selling the information.
Why should you know about different distributors, suppliers, agents, resellers, and dropship? Because it is very important in business, especially in terms of conveying information.
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That is a brief explanation of the different distributors, suppliers, agents, resellers and dropship you should know. Thank you for reading, congratulating on business and hope your day is always fun.