THE DIFFERENCES OF DISTRIBUTOR SUPPLIER AGENT AND RESELLER

In the business world, we know there are many types of sellers. Starting from the direct seller or acting as an intermediary. Examples are resellers, agents, and distributors.

The four of them can run any kind of business, from the fashion business such as clothing and accessories, books or printing products, beauty and care products, to products such as pipes for building materials or for other needs.

So, in this discussion, we will discuss the meaning and differences between agents, resellers, and distributors. Come on, just look at the discussion below!

What is meant by agent?

In simple terms, we can think of agents as intermediaries. These agents can be individuals or business entities appointed and given special authority to represent and act on behalf of other companies/business entities. 

Agents must comply with the terms and regulations with the business entity/company they represent.

An agent's job is to offer the services or services of the company it represents and increase sales. He is also responsible for maintaining the good image of the company, aka not doing things that could hurt the company's brand reputation.

So, it's clear that what is meant by an agent is an intermediary party who works with a company. Example: Brand A Galvanized Pipe Manufacturing Company, appoints Company X as a sales agent or intermediary.

The goal is to increase sales of Brand A Galvanized Pipe products as well as carry out promotions. Profit sharing will be discussed in the agreement of each party.

Agent features:

• The reach of the marketing area is not too broad.
• Not always in the form of a business entity or having a certain business license alias it can be in the form of an individual.
• The purchase system uses a commission or a sell-out system (according to the agreement).
• Patents on goods or services are fully owned by the company that appointed them.
• Does not have the authority to determine the price of the goods/services.
• Parties outside the company alias other parties (intermediaries).

What Is Meant by a Distributor?

In simple terms, we can interpret distributors as parties who carry out distribution activities or the process of distributing goods.

These distributors have very close relationships/linkages with resellers, retailers, wholesalers, retailers and other distributors. Because usually it is the distributor who will supply the product to the seller/retailer.

Thanks to this distributor, producers can distribute their products more quickly and efficiently to all regions in US. Distributors also expedite the flow of distribution of goods to the end consumers. With distributors, manufacturers can also be more cost-effective in distributing products because the distribution process has been assisted by these distributors.

So, what is meant by a distributor is a party that distributes products from producers to other parties. Usually, distributors have special agreements with manufacturers.

One of the contents of the agreement is that the distributor is not permitted to sell similar products from a manufacturer's competitors or use the brand name as part of its business. The focus is only to distribute and sell products from manufacturers.

Then, what is the difference between distribution and distributor? 

Distribution is the process of distributing products. Meanwhile, the distributor is a designation for those who carry out the distribution process. So, distribution is the process/activity and the distributor is the culprit.

What Is Meant By Supplier?

Suppliers or suppliers are parties who sell raw/semi-finished materials to other parties to be reprocessed into products ready for sale. These suppliers can be individuals or certain business entities.

For example, a vegetable supplier cooks ingredients for a restaurant to then process them into ready-to-eat food. Yarn suppliers supply yarn to textile companies to be used as a material for clothing.

This supplier functions as: the party that ensures the availability of goods, ensures the stock of raw materials to be supplied, and regulates the process of storing raw materials in the warehouse.

With reliable and quality suppliers, the production process for producing companies will also run more smoothly because the availability of raw materials is always guaranteed.

So, what is meant by a supplier is a party that supplies raw materials to other companies (producers).

How to Find First Hand Suppliers

The transfer of products from hand to hand will certainly make the price of these products rise. To be more cost-effective, you can look for first-hand suppliers. Here we share how to find first-hand suppliers:

1. Come to the supplier's location directly.

2. Search for information on the internet. Example: Galvanized Pipe Supplier. Usually, the search results will appear many and varied. If you have more free time, you can open the websites of these supplier companies one by one and then compare prices.

3. Go to locations that are identical to these raw materials.

4. Visit special fairs or bazaars.

5. Search online forums.

6. Ask for recommendations from your acquaintances.

7. So, those are some ways to find first-hand suppliers that you can use as a reference. You can also use the methods above to find suppliers of Pipe Fittings, Galvanized Pipes, Iron Pipes, Carbon Steel Pipes, and other piping components.

What is meant by reseller

"re" means back and "Seller" is the seller. We can interpret resellers as parties who resell products they buy from other parties. A reseller will usually buy his product first from another party (such as a distributor) and then resell it at a price he sets himself.

This is different from agents who cannot determine the selling price of their own products. These resellers have more freedom to determine the final selling price of the product. Resellers can take margin (the difference between the selling price and the buying price) to make a profit.

As a Reseller, you must collect capital first so you can buy the product. You also have to have good financial management, goods management, and marketing skills so you don't lose money.

So, what is meant by a reseller is a party that resells a product to consumers.

Conclusion

From the above understanding, we can draw the conclusion that:

Suppliers:

Parties who sell goods continuously to other parties for distribution activities.

Goods sold are usually raw materials.

Distributors :

The first chain after the manufacturer.

Acting as a distributor of goods or actors of distribution activities.

Generally selling finished goods from manufacturers or selling raw goods from suppliers.

Agent :

Intermediary between distributors and retailers.

Benefit from commissions or according to the agreement.

Resellers:

Parties who resell the products they buy from distributors then sell them to final consumers.

That's all for the discussion this time, I hope the discussion above is useful for you.

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