Purchasing cooperative

A purchasing cooperative is a member-owned organisation that buys goods or services for its members. It pools demand and may manage supplier contracts, distribution or shared purchasing services, with benefits allocated according to its rules.

Members pool purchasing power and may share functions such as supplier selection, warehousing or order administration. The cooperative's rules determine membership requirements, voting rights, capital contributions and how any surplus is used or returned. Members therefore participate as owners as well as customers, rather than simply signing up for a discount service.

For example, independent retailers may form a cooperative to negotiate stock purchases and arrange combined deliveries. Each shop still controls its own assortment and selling prices. Compared with a commercial buying group, the ownership structure gives members a formal role in decisions, although the practical services can look similar.