Cooperative organizations normally exist to leverage their combined financial strength in an effort to share and cut down selling fees. By way of example, members of a promoting cooperative band with each other to deliver their merchandise for the cooperative, which in turn sells the merchandise to a specific market place. Grape growers may perhaps form a cooperative to sell tons of grapes to wineries, retailer grocers, or juice providers.
Members of a distribution cooperative acquire services from the cooperative in an effort to distribute to shoppers. By way of example, a telecommunications cooperative may perhaps acquire bulk, long-distance telephone service and sell it back to members who then make it out there to their shoppers.