A buyer cooperative is a type of online purchasing agent that brings buyers together for the purpose of buying in larger quantities and, thus, reducing prices.
A cooperative refers to a legal entity generally formed by individuals with similar motives or interests, such as suppliers, buyers, or customers, for reducing costs, and gaining economic power. A cooperative has an unlimited life span, limited liability, an elected board of directors, and controlling staff. The member-owners distribute all profits among themselves in proportion to their contributions.
From the above definition of the cooperative, we can easily find out the definition of a buyer cooperative. It refers to a legal entity generally formed by buyers with similar motives or interests, such as for reducing costs and gaining economic power. As mentioned in the former definition of this term, it is an online purchasing agent.
According to openstax.org, a buyer cooperative indicates-“A group of cooperative members who unite for combined purchasing power.”
Use of the term in Sentences:
- Buyer cooperative unites the buyers to conserve their purchasing rights to buy in large quantities and in reduced prices.
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