When it comes to product distribution, it is important to understand the roles of a supplier, distributor, and wholesaler. Each of these three parts helps companies protect and distribute their products, but the nature of how they participate in the product distribution process is slightly different. A supplier is a person or group that acts as a source of goods and services. They provide the manufacturer's products, and sometimes the manufacturer and the supplier are one and the same.
A supplier works with distributors and wholesalers to get the products they need. Without suppliers, no retailer would have access to the products they want to sell. A distributor has a direct relationship with manufacturers, while a wholesaler buys large quantities of products from the distributor. Distributors are resellers of products, who cover a specific area or market.
They work closely with manufacturers 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. The wholesaler is a merchant who buys products in bulk and sells them in smaller quantities.
When you work with a distributor to get your products on retailers' shelves, or less to sell them directly to wholesalers before they reach consumers, it means they'll buy your products. You'll sell them directly, which makes them your customers, but they'll also want to know how you'll market your product to wholesalers, retailers and consumers. There are several different types of distributors you can use, depending on your company's objectives. Exclusive distributors are the only ones in a given region, while intensive distributors help companies cover many territories quickly. Direct distributors sell directly to stores, and selective distributors allow brands to be more specific about where they want their products to be sold. Your company may work with a wholesaler to help you distribute your products to retailers and consumers.
Wholesalers can also be useful if you own a retail business, or even to insure materials if you buy supplies in bulk. If you decide to work with a distributor to sell your products, you probably don't have any direct contact with wholesalers. However, you also have the option of working directly with a wholesaler. When developing a product, you must have both a wholesale and a retail price if you are also going to sell directly to retailers. Selling directly to customers can be beneficial for companies that want more control over their product distribution process. It is important for companies to understand the difference between suppliers, distributors, and wholesalers so that they can make informed decisions about how they want their products distributed.
Working with one or more of these parties can help companies protect and distribute their products more effectively.