How do traditional suppliers sell

Distribution is an economic behavior that an enterprise or individual sells goods for another enterprise or individual according to the economic contract signed by both parties. The goods of the distribution unit are regarded as purchased goods, enjoy a certain discount rate, and obtain a certain purchase and sale price difference as the basis for the distribution unit to obtain profits.

Advantages: adopting the distribution model is one of the effective ways to stabilize the market and expand sales. Under the distribution mode, exporters usually give certain preferential treatment to dealers in terms of price and payment terms, which is conducive to mobilizing the enthusiasm of dealers and using their distribution channels to serve the promotion of export commodities. In addition, exclusive distribution can avoid or reduce the losses caused by self-competition to a certain extent.

Disadvantages: Enterprises also deal in the same goods of suppliers. When the market is bad, they often sell at a reduced price because of the difficulty in cash flow. This move may cause a chain reaction, and businessmen will follow suit. Consumers' psychology is "buy up and not buy down", and competing to cut prices may bring down the market.

2. Consignment

Consignment means that some websites that provide online wholesale services or vendors that can provide wholesale goods reach an agreement with people who want to do online consignment, and provide them with data such as pictures of goods, rather than physical objects, and sell them to online consignors at consignment prices.

Advantages: Online store consignment can provide goods for online stores free of charge, which is convenient for primary sellers without funds. At present, some domestic websites have begun to develop distribution channels on the basis of consignment. As an important part of the sales channel, distribution is different from consignment, and it will strictly control and manage the whole sales channel and process.

Disadvantages: Consignment websites only pay attention to sales volume, not management channels, which leads to malicious competition among consignment customers, affects the profits of regular sellers and adversely affects product brands.

3. Joint ventures

A joint venture refers to a joint venture in which the company agrees to adopt a certain mode of operation. The joint venture does not change the ownership, affiliation and financial relationship of the parties involved in the joint venture.

Advantages: Under the joint venture commodity management mode, commodity circulation enterprises generally do not sell goods on credit, which also ensures the timely recovery of sales funds. Avoid the phenomenon of poor capital turnover, and at the same time ensure that enterprises can achieve operating profits on schedule.

Disadvantages: it is easy to have a situation called joint venture, which is actually a loan.

Extended data:

The joint venture model has the following characteristics:

1. Commodity circulation enterprises only need to provide places for commodity sales, and do not need to provide funds to buy commodities to be sold. It is worth noting that this function is completely different from venue leasing. Under the "joint commodity" management mode, commodity circulation enterprises do not charge site rent for selling commodities, but directly participate in the profit sharing of commodity suppliers.

2. Commodity circulation enterprises do not have inventory commodity management links. All commodities are purchased and stored by commodity suppliers themselves, and the production enterprises or wholesalers directly bring the commodities to the business premises. Commodity circulation enterprises do not need to be responsible for the purchase of goods, which also saves the cost of inventory management, but need to be responsible for the public security management of inventory goods.

3. The division of labor under the joint venture mode is different. Under the joint operation mode, commodity sales personnel are generally equipped by commodity providers, and the personnel of commodity circulation enterprises only need to engage in the auxiliary work of sales and do not directly participate in the sales of commodities. Commodity circulation enterprises are also not responsible for paying the wages of commodity sales personnel or shopping guides.

4. Commodity circulation enterprises control the payment and settlement of sales. Commodity circulation enterprises do not directly participate in the sale of commodities, but all the payment settlement work after the sale of commodities is the responsibility of commodity circulation enterprises, that is to say, consumers do not settle the payment with commodity suppliers, but pay the payment to commodity circulation enterprises that provide commodity sales places.

5. The relationship between commodity circulation enterprises and commodity providers is "sales before settlement".

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