The difference between direct selling modes

The main difference between direct selling mode and traditional selling mode lies in the difference of sales channels.

Traditional sales channels are:

Manufacturer ~ general agent ~ provincial agent ~ municipal agent

Wholesalers ~ shops ~ consumers.

The sales channels of direct selling are:

Manufacturers ~ distributors ~ consumers.

What is the way for traditional commodity sales to generate benefits?

Traditional distribution mode

Products have to go through many intermediate circulation links before they can reach the terminal-provincial distributors (agents) and municipal distributors go to shopping malls or shops, and then, after consumers take the initiative to buy at home, they can become commodities and reach consumers.

In this traditional sales process, goods go through many intermediate links from product to product, such as freight, storage, loss, management, wages, advertising and so on. Every time a product goes through a link, it will increase its price. Therefore, after such price increases, a product with a cost of one yuan may become several yuan or more at the terminal, which will harm the interests of both consumers and manufacturers.

Benefit model of direct selling

What is the difference between the benefits of direct selling and traditional distribution?

Direct selling means that products start from manufacturers and reach consumers directly through direct sellers. This sales method saves a lot of intermediate links, so it also saves a lot of intermediate costs, thus reducing the price of products and benefiting consumers and manufacturers.