Knowing the Difference Between Distributors, Wholesalers, and Retailers

Obtaining the required merchandise involves using a variety of distribution sources. An effective marketing channel includes several middlemen between the consumer and manufacturer. This can include the wholesaler, distributor and retailer. Here are several of the key differences related to the services involved in the retail supply chain:

Distributor

A well-established distributor is able to build-up a solid relationship with the major manufacturers. Distributors have the responsibility of acting as the main point of contact for the manufacturer. This means the buyer goes direct to the distributor and not to the manufacturer when looking to purchase the goods. Many of the distributors have exclusive agreements with the manufacturers. This can limit the number of companies involved in trading a certain product. A distributor isn’t likely to get involved in selling the goods direct to the end consumer. They are mainly involved in dealing with the large retailers or wholesale representatives … Read More

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