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What is consignment?
What is distribution?

With the outdated concept of wholesale, the popular concept is distribution. Distribution means selling separately. It can be seen that in the process of sales, the situation of the next home has been considered, not blind sales, but planned sales, and merchants have the concept of service terminals. Distribution and wholesale are relative, and they are the definitions of businesses from the perspective of management and planning. Therefore, "dealers", generally enterprises, are used to saying that they have the consciousness of serving terminals. In other words, a manufacturer needs to find more than one agent and distributor, which is called distribution.

What is consignment?

The so-called consignment means that the manufacturer or agent gives the product to the wholesaler or retailer for sale, and then collects the payment after the wholesaler or retailer sells the product at a specified time. It is actually a "trial" process in which a manufacturer (agent) gives a product to a merchant. If the "trial" is successful, the merchant will deliver the product. Consignment is risky, and the products sold by manufacturers can neither receive loans nor get back the goods.

What is direct selling?

According to Article 3 of the Regulations on the Administration of Direct Selling, direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers outside the fixed business premises. That is to say, the characteristic of direct selling is that sales staff sell products directly to consumers outside the fixed business premises. There is only a single salesman between enterprises and consumers, and there is no multi-level salesman.

What is an agent?

Simply put, an agent is a middleman. For example, Company A produced a product, and they sold it directly to customers at a cost of 10 yuan. However, due to various conditions, they had to develop their own market and invested a lot, so they asked Company B to help them sell their products. For example, Company B has many customers, and the price they sell to customers is 15 yuan. This is the basic concept of agency.