Well, let us put these definitions aside and have a look at the practical definition and meaning of vendors.
A vendor can be more appropriately defined as a businessman or an entrepreneur, who acts as a link in the chain that supplies society with a necessity or a particular commodity. He obtains a reasonable profit in the process, that is by no means very exorbitant.
How to Become a Vendor
Hence, the first step is making a market research survey and calculating the probability of sales. To do this, take a commodity like a DVD player. Then gather data about the different manufacturers, models, and cost.
Also, according the purchasing power of the people, zero down on the cost of the DVD player models that are most popular and then make a list of manufacturers. In the same manner, assess all other related products of the companies, like CD players, plasma screens, etc.
Applying for Agency Approval
After you have finished with the assessment part and have chosen the locality of your operation, then you need to approach and get agency approval from the company whose product you wish to sell.
Before actually applying for the agency of the company, get to know about the other vendors of the same company. It would be even more appropriate and advisable to approach and consult the other vendors.
Most of the companies demand that some conditions be fulfilled from the applicant of the agency. One of the most important conditions is the capital that the applicant is ready to invest in the dealership.
Setting Up Your Business
The final stage is the most difficult of all stages, as all the supplies, infrastructure, supply chains, etc., are established in this stage.
To become a vendor and achieve substantial success, all you need to do is become a very good entrepreneur, and also a very good sales person. Remember that becoming a vendor is not an easy task. One needs to work very hard and provide the best possible supply chain management.