Do distributors sell to wholesalers?

Distributors partner with manufacturers to sell products to numerous customer entities. They often sell to wholesalers or directly to retailers. While wholesalers serve retailers' needs by providing them with products to sell, distributors support the distribution of manufacturers' products to reach consumers. A distributor works closely with a manufacturer to sell more products and gain better visibility of these products.

Distributors find wholesalers who will resell their products. A wholesaler works more closely with retailers to meet their needs by purchasing products in bulk at a discount. Wholesalers see retailers as their key customers. Many wholesalers focus on large retail companies.

On the contrary, distributors work for producers by actively participating in real promotion and sale in the general market. Distributors work as if they were salaried employees of the producer. Producers are the main customers of distributors. If you sell branded items, go directly to the product manufacturer.

They may sell to you based on their minimum order requirements. If you're too small for them or only sell through established distribution channels, ask them for a list of reputable distributors you can contact. Meanwhile, both vendors and distributors sell to the final consumer, distributors store products in a warehouse and ship them to customers. Both distributors and sellers can have direct relationships with suppliers, and distributors can be the primary supplier of a supplier whose final products are sold in physical stores.

Sellers, instead of storing materials in a warehouse, usually stock a physical store with products to sell, and what you see is what you get. If the store is sold out, you're out of luck. They buy products in bulk at a lower price from producers and sell them to retailers in smaller units that attract relatively higher prices. In some cases, wholesalers manufacture a portion of their products so that they can offer low-cost bulk products, but they also have other suppliers of bulk products that they don't manufacture, who sell to companies that then repackage and sell those products.

A wholesale distributor buys products directly from a manufacturer and then resells them to the next business along the supply chain, usually a retailer or e-commerce company. Most will be happy to direct their verified wholesale distributors or representatives who provide services in their area. Exclusive distributors are the only ones in a given region, while intensive distributors help companies cover many territories quickly. Manufacturers and suppliers sell to wholesalers who can meet their MOQs and distribute their products to a wider market.

A large producer can use a sales department, but for small businesses it is costly, hence the need for distributors and wholesalers, who are different from each other in their operations and functions. A flour milling company is a supplier that sells to a vendor, such as a bakery, who then sells to the end customer. If any of the potential distributors you find don't have an email address or phone number available, you can do a WHOIS search to find the contact information for the website owner. Wholesale distributors can significantly affect cash flow and potential growth and ultimately help your company deliver the best products.

This simplifies the purchasing process for large companies and allows them to go through a single distributor to obtain their products. A retailer can help a food and beverage manufacturer put their products on supermarket shelves or in local stores. Both are resellers who are involved in distributing products from manufacturers to customers, and it is common for some supply chains to use only one wholesaler or distributor. It is important to know the role of a supplier, distributor and wholesaler so that you understand how they could fit into your supply chain.

The difference is that distributors keep products in stock but don't manufacture them, while a wholesaler is usually a manufacturer who intends to supply other companies with products that they can white label or repackage into other products. Compare each wholesale distributor to your business requirements and determine which ones are the most suitable. . .

Rachel Celli
Rachel Celli

Infuriatingly humble web junkie. Incurable pop culture practitioner. Unapologetic beer lover. Subtly charming social media fanatic. Passionate zombie nerd.