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Guilherme Mazui

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What is the Difference Between Wholesaler and Distributor?

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The main difference between a wholesaler and a distributor lies in their roles within the supply chain and their relationship with manufacturers, retailers, and customers. Here are the key differences:

  • Wholesaler:
  • Works more closely with retailers to match their needs by buying products in bulk at a discount.
  • Primarily sells to retailers and rarely interacts with customers.
  • Does not actively promote products or search for new sales opportunities.
  • Focuses on buying in bulk and storing large amounts of products.
  • Distributor:
  • Works closely with manufacturers to sell more goods and gain better visibility for their products.
  • Acts as a sales representative for the producer, actively looking for orders from various sources in the market.
  • May work exclusively with certain manufacturers or within a specific geographical area.
  • Can sell directly to retailers or wholesalers.

In summary, wholesalers primarily focus on buying and selling products in bulk to retailers, while distributors work closely with manufacturers to promote and sell their products, acting as an intermediary between manufacturers and retailers.

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  • What is the Difference Between Wholesaler and Distributor?
  • Comparative Table: Wholesaler vs Distributor

    • Comparative Table: Wholesaler vs Distributor

    Here is a table outlining the differences between wholesalers and distributors:

    Feature Wholesaler Distributor
    Definition A wholesaler is a trader who buys goods in bulk quantities and sells them in smaller ones. A distributor is a reseller of products that cover a specific area or market. They have a business relationship with manufacturers and act as a sales representative for them.
    Role Wholesalers focus on serving retailers by providing a wide range of products for store inventories. Distributors facilitate market expansion and manage logistics, actively looking for orders from various sources in the market and executing them. They also manage returns.
    Relationship with Manufacturers Wholesalers do not have a direct contract with manufacturers and can offer products from multiple manufacturers to retailers. Distributors have a business relationship with manufacturers and work closely with them to sell their products.
    Income Source Wholesalers generate income from the discount charged on products, i.e., they purchase products in large volumes from producers at a low price and sell them further to the retailers. Distributors charge service fees for rendering services as a sales representative for the producer.
    Types of Distribution Levels Wholesalers are present in two-level and three-level channels of distribution. Distributors are present only in the three-level channel of distribution.

    In summary, wholesalers buy in bulk and sell in smaller quantities, while distributors focus on specific markets and areas and have a more active relationship with manufacturers.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.