Distribution generally refers to the agreement between the distributor and the manufacturer or supplier to purchase and sell the designated goods within the specified time limit and territory. In the case of distribution, there is a trading relationship between the supplier and the dealer. From the legal point of view, the relationship between the supplier and the dealer is my own relationship. The dealer purchases the goods in his own name. When reselling within the prescribed area, the dealer also carries out the price in his own name. Business risks such as fluctuations must be borne by the dealers themselves.
Distribution can be divided into general distribution and exclusive distribution. In the case of exclusive distribution, the minimum number of dealers and the other suppliers' products that are not allowed to be sold are generally specified.
Agent means that the agent or the principal grants the agent “the right to sell the goodsâ€, and the agent acts as the agent in the sales agent to collect orders, sales and handle sales related matters. Agents and distributions have similarities in the continuity and long-term relationship of the contract, the fixedness of the sales area, the limitation of trading volume, and the restrictions on unfair competition. Therefore, in the actual business, some people will mistakenly Agents are confused with distribution.
Specifically, agents and distribution mainly have the following differences:
(1) Both parties of the agent are an agency relationship, and the two parties to the distribution are a trading relationship.
(2) The agent sells under the name of the principal, that is, the manufacturer, and signs the sales contract, while the dealer sells in its own name.
(3) The income of the agent is the commission income, while the income of the dealer is the difference income of the sale of the goods.
(4) From the legal relationship, the agent behavior is the principal's behavior, and the legal consequences of the civil action between the agent and the third party within the scope of authorization are attributed to the principal (supplier), while the dealer and the user The legal consequences of civil acts that occur between them must be borne by themselves.
The difference between distribution and agency The difference between dealers and agents is mainly related to whether there is any ownership of goods. The agent only acts as a medium between the buyer and the seller, forming a transaction and earning commissions. Distribution refers to the independent operation of the property owned by the company.
In addition to the ownership of the goods, dealers and agents have the following aspects:
First, the two methods of obtaining profits are different. The former is for sale at a higher price and the operating profit. The latter is sold at a prescribed price, and the commission is also a so-called commission.
Second, the operating authority of the two is also different. The former can operate a variety of varieties – even operating competing products. The latter has fewer operating categories and generally does not operate competitive brands;
Third, the difficulty of controlling the two is different for the manufacturer; the cost of the two is different.
Agents are mainly divided into general agents, regional and sub-brand agents, and provincial branches established by the general agents themselves. The establishment of agents can share the risks of the manufacturers, so that the manufacturers and agents can jointly drive the market and reduce the business risks of the manufacturers.
At the agent level, in addition to setting up the total generation, the agent can also set up an agent or regional agent according to the channel mode of the manufacturer and cooperate with the terminal seller at the same time. In this way, the agent transforms from simple distribution to a channel maintainer with management functions. In addition to business management, the agent also has various functions such as brand management, promotion management, service docking, and financial management.
The agency system and the distribution system can also penetrate each other. The main difference between various sales channels is the increase in the level of agents or dealers. At present, the management of agents and distributors mainly focuses on the management of price and supply, and also provides some support for personnel training and advertising. For agents and distributors, their profits are mainly derived from sales profits, rebates, installation and maintenance services.
Distribution can be divided into general distribution and exclusive distribution. In the case of exclusive distribution, the minimum number of dealers and the other suppliers' products that are not allowed to be sold are generally specified.
Agent means that the agent or the principal grants the agent “the right to sell the goodsâ€, and the agent acts as the agent in the sales agent to collect orders, sales and handle sales related matters. Agents and distributions have similarities in the continuity and long-term relationship of the contract, the fixedness of the sales area, the limitation of trading volume, and the restrictions on unfair competition. Therefore, in the actual business, some people will mistakenly Agents are confused with distribution.
Specifically, agents and distribution mainly have the following differences:
(1) Both parties of the agent are an agency relationship, and the two parties to the distribution are a trading relationship.
(2) The agent sells under the name of the principal, that is, the manufacturer, and signs the sales contract, while the dealer sells in its own name.
(3) The income of the agent is the commission income, while the income of the dealer is the difference income of the sale of the goods.
(4) From the legal relationship, the agent behavior is the principal's behavior, and the legal consequences of the civil action between the agent and the third party within the scope of authorization are attributed to the principal (supplier), while the dealer and the user The legal consequences of civil acts that occur between them must be borne by themselves.
The difference between distribution and agency The difference between dealers and agents is mainly related to whether there is any ownership of goods. The agent only acts as a medium between the buyer and the seller, forming a transaction and earning commissions. Distribution refers to the independent operation of the property owned by the company.
In addition to the ownership of the goods, dealers and agents have the following aspects:
First, the two methods of obtaining profits are different. The former is for sale at a higher price and the operating profit. The latter is sold at a prescribed price, and the commission is also a so-called commission.
Second, the operating authority of the two is also different. The former can operate a variety of varieties – even operating competing products. The latter has fewer operating categories and generally does not operate competitive brands;
Third, the difficulty of controlling the two is different for the manufacturer; the cost of the two is different.
Agents are mainly divided into general agents, regional and sub-brand agents, and provincial branches established by the general agents themselves. The establishment of agents can share the risks of the manufacturers, so that the manufacturers and agents can jointly drive the market and reduce the business risks of the manufacturers.
At the agent level, in addition to setting up the total generation, the agent can also set up an agent or regional agent according to the channel mode of the manufacturer and cooperate with the terminal seller at the same time. In this way, the agent transforms from simple distribution to a channel maintainer with management functions. In addition to business management, the agent also has various functions such as brand management, promotion management, service docking, and financial management.
The agency system and the distribution system can also penetrate each other. The main difference between various sales channels is the increase in the level of agents or dealers. At present, the management of agents and distributors mainly focuses on the management of price and supply, and also provides some support for personnel training and advertising. For agents and distributors, their profits are mainly derived from sales profits, rebates, installation and maintenance services.
Guangzhou Yanzi Textile Co., Ltd. is a comprehensive company integrating design, development and production. Having certain influence and appeal in the domestic market, we have cooperated with more than 1,000 well-known brand clothing companies so far. Moreover, our products are sold well in more than 30 countries and regions including Middle East, Southeast Asia, Europe and America. Our company owns self-support import and export rights and has a domestic professional design team. We mainly produce diversified products such as embroidery fabrics, lace fabrics, jacquard fabrics and knitted fabrics, etc.
Yanzi Textile has a team that is hardworking, passionate and innovative. We are full of vigor and ideal in our work. Good services to our clients is the core goal of our daily work.
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