Yes it is correct.
a practical case is my site and the company that will be born soon. the company is a distributor of electronic products with a mark of big distribution as Unieuro, mediaworld, etc. .. sellers are franchising companies or affiliates who are obliged to supply from the master vendor. the master vendor in addition to providing the products, provides the platform for e-commerce, website, email, certified mail, business management system, local and national advertising, intelligent stocks management or even the ability to sell directly in dropshop, etc. .. the sale dropshop works in a simple way: the vendor sells the item and collects the commission. the master vendor receives the remaining part of the amount that the customer has paid and send the item in the name and on behalf of the vendor. intelligent management of stocks instead allows you to move the articles in the various inventories of the vendors according to their needs while avoiding the stocks themselves become fixed assets. When a vendor buy a Product from the master vendor, this iten should be' updated with the quantity bougth.
It. Is more difficult to describe al the features, but ti is more interesting how business model for small vendor.