Distributor of goods and services
Posted: Wed Jan 22, 2025 4:32 am
Distributor of goods and services
With the help of this distributor, the manufacturer can reach the end consumer. Such an intermediary is engaged in combining the goods of different companies. This allows increasing sales. Thanks to the distributor, the manufacturer can increase the margin and reduce logistics costs. At the same time, there is very strong competition in the intermediary market.
This model also has investor database several varieties:
Retail trade (including e-commerce) of a wide range of purposes. It presents a large number of products in a vertical. The consumer uses the distributor's platform to buy products of a wide range of purposes. This model has been successfully implemented in Amazon and Walmart.
Niche orientation (narrow purpose). In this case, the distributor works with a specific group of goods. Bright examples are Toys "R" Us and Babyoye.
Personal sales club. The client pays a certain amount at a specified time for participation. This allows the consumer to use an exclusive system of discounts on the largest brands. Bright examples are Costco, Sam's club, Gilt, Exclusively.
Product per day. This model is implemented in Woot. The company sells only one product every day at a big discount. In this way, the manufacturer can very quickly get rid of excess goods in warehouses. The distributor, in turn, sells large volumes of products. The buyer also remains in the black, since he receives information about this or that product every day.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Razor and Blade Model
In this case, the company sells one product at a reduced price in order to then sell another. A striking example is Gillette razors. They can be bought at a fairly low price, which cannot be said about cartridges, which, of course, you cannot do without. If you choose this business model, then keep in mind that the additional product will have to be protected by a patent or tied to the platform. Otherwise, competitors will start producing a similar product, and your profit will fall.
Integrated model
Typically, this scheme is used by traditional retailers who want to increase the flow of customers with the help of Internet users. Customers make a purchase on the distributor's website and receive it in the store or warehouse.
BPM-system Directum RX
Source: shutterstock.com
Brokerage business model
The agent acts as an intermediary between the client and the seller and receives a commission for their work. This model can bring very good profits due to the monopoly advantage. The brokerage way of doing business stands out from the rest due to its scale and network effects. However, if there are not many sellers and clients, then this option will not suit you.
Landlord Business Model
The company rents premises or goods for a certain period and at a negotiated price. Hotels and airlines can be included in this category. Physical products are usually the objects of this model. However, today it is also used for Internet products (e-books, music, etc.).
Advertising business model
This technology is often used by Internet sites. Such an enterprise receives most of its profits from the content it posts. When filling sites and advertisements, the specifics of the Internet business model are taken into account.
If the published materials are interesting to users, then the entrepreneur posts his advertisement. The main problem with this business technology is AdBlocker. This program blocks certain fragments of the page with pop-up windows, banners, etc. In addition, users, as a rule, have a negative attitude towards advertising.
There are three variations of this business model:
Advertising via banners and displays. Users see such ads daily in the media, on the Internet, on various websites (usually on the sides of the text). The customer usually pays for the display (CPM – cost per thousand impressions).
Pay per click. This model is implemented in Google. Payment occurs if the user clicks on the link or opens the company's ad.
Media Ads: The user hears or sees an advertising message on the radio or TV station (Spotify, YouTube, etc.).
With the help of this distributor, the manufacturer can reach the end consumer. Such an intermediary is engaged in combining the goods of different companies. This allows increasing sales. Thanks to the distributor, the manufacturer can increase the margin and reduce logistics costs. At the same time, there is very strong competition in the intermediary market.
This model also has investor database several varieties:
Retail trade (including e-commerce) of a wide range of purposes. It presents a large number of products in a vertical. The consumer uses the distributor's platform to buy products of a wide range of purposes. This model has been successfully implemented in Amazon and Walmart.
Niche orientation (narrow purpose). In this case, the distributor works with a specific group of goods. Bright examples are Toys "R" Us and Babyoye.
Personal sales club. The client pays a certain amount at a specified time for participation. This allows the consumer to use an exclusive system of discounts on the largest brands. Bright examples are Costco, Sam's club, Gilt, Exclusively.
Product per day. This model is implemented in Woot. The company sells only one product every day at a big discount. In this way, the manufacturer can very quickly get rid of excess goods in warehouses. The distributor, in turn, sells large volumes of products. The buyer also remains in the black, since he receives information about this or that product every day.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Razor and Blade Model
In this case, the company sells one product at a reduced price in order to then sell another. A striking example is Gillette razors. They can be bought at a fairly low price, which cannot be said about cartridges, which, of course, you cannot do without. If you choose this business model, then keep in mind that the additional product will have to be protected by a patent or tied to the platform. Otherwise, competitors will start producing a similar product, and your profit will fall.
Integrated model
Typically, this scheme is used by traditional retailers who want to increase the flow of customers with the help of Internet users. Customers make a purchase on the distributor's website and receive it in the store or warehouse.
BPM-system Directum RX
Source: shutterstock.com
Brokerage business model
The agent acts as an intermediary between the client and the seller and receives a commission for their work. This model can bring very good profits due to the monopoly advantage. The brokerage way of doing business stands out from the rest due to its scale and network effects. However, if there are not many sellers and clients, then this option will not suit you.
Landlord Business Model
The company rents premises or goods for a certain period and at a negotiated price. Hotels and airlines can be included in this category. Physical products are usually the objects of this model. However, today it is also used for Internet products (e-books, music, etc.).
Advertising business model
This technology is often used by Internet sites. Such an enterprise receives most of its profits from the content it posts. When filling sites and advertisements, the specifics of the Internet business model are taken into account.
If the published materials are interesting to users, then the entrepreneur posts his advertisement. The main problem with this business technology is AdBlocker. This program blocks certain fragments of the page with pop-up windows, banners, etc. In addition, users, as a rule, have a negative attitude towards advertising.
There are three variations of this business model:
Advertising via banners and displays. Users see such ads daily in the media, on the Internet, on various websites (usually on the sides of the text). The customer usually pays for the display (CPM – cost per thousand impressions).
Pay per click. This model is implemented in Google. Payment occurs if the user clicks on the link or opens the company's ad.
Media Ads: The user hears or sees an advertising message on the radio or TV station (Spotify, YouTube, etc.).