| According to the Direct Selling Association, the | | | | sales, the product never enters a retail store. Instead |
| definition of direct sales is "the sale of a consumer | | | | representatives sell directly to the customer and the |
| product or service, person-to-person, away from a | | | | product is shipped directly to the customer's doorstep. |
| fixed retail location." Let's look at this a little closer and | | | | So, what are the advantages of direct sales? There |
| consider the benefits of direct selling. | | | | are many examples both for the sales representatives |
| A direct sale is the process of getting a product | | | | and the customer. Because shipping costs are |
| directly into the customer's hands and removes many | | | | decreased by drop-shipping directly to the customer |
| of the middle men. Perhaps the best way to | | | | and the company has fewer salaries to pay to |
| understand direct sales is to compare it to retail sales. | | | | delivery drivers, warehouse workers and store |
| For this example, we will use a bottle of shampoo. A | | | | employees and management, the customer is getting |
| typical bottle of shampoo is manufactured, and then | | | | a quality product at an excellent price. The sales |
| shipped to at least one distribution center before it is | | | | representatives also benefit because they earn a |
| shipped to a retail store and put on a shelf. When we | | | | higher commission on the sale than they would if the |
| run out of shampoo, we get in our car and drive to a | | | | product were to be sold in a retail store. |
| retail store and purchase a new bottle. With direct | | | | |