Retailers are the middlemen between manufacturers and customers, both physical and online. They partner with distributors to purchase products from manufacturers and resell them to various customer entities. Distributors work closely with manufacturers to increase the visibility of their products and sell more of them. Distributors look for wholesalers who will buy their products in bulk at a discounted price.
Wholesalers are not limited to one product, but have a wide range of products for retailers in different industries. As they are more localized, distributors can respond quickly to customer needs. It is essential for retailers to find the right wholesaler and distributor to get good deals and ensure cost-effective pricing. The difference between wholesalers, distributors, and retailers lies in their business model and marketing objectives.
To keep track of the various wholesalers and distributors, many companies have implemented a supplier management system that can help manage the onboarding of new suppliers. The distributor performs some of the same functions as a wholesaler, but generally plays a more active role. The primary purpose of wholesalers is to meet the needs of retailers, while distributors are the manufacturer's direct point of contact for potential buyers. The difference between them involves several factors, but it can be described as a difference in the number of products they have on hand.
On the other hand, retailers are people or entities that buy and sell products directly to end consumers through different types of distribution channels.