Differences between distributors, wholesalers and retailers

As long as you live in the market, you cannot avoid buying products from this or that store. But something is always ignored by most people. For example, goods purchased from some shops involve distribution from many sources. This phenomenon is more obvious in Yiwu, China, as the well-known Yiwu International Trade Market attracts a huge number of buyers all over the world.

Getting a product to the market largely requires an effective marketing channel for companies that manufacture durable goods and other products. A supply chain typically features various middlemen between the manufacturer and the consumer, such as distributors, wholesalers and retailers. And in fact, there are many differences between wholesalers and retailers, and distributors.

Distributors

Distributors frequently have a business relationship with manufacturers that they represent. Many distributors maintain exclusive buying agreements that limit the number of participants or enables distributors to cover a certain territory. The distributor becomes the manufacture’s direct point of contact for prospective buyers of certain products. However, distributors rarely sell a manufacture’s goods directly to consumers. Wholesale representatives and retailers generally find distributors to buy products for resale.

Wholesalers

Wholesalers directly buy a large quantity of products from distributors or manufacturers(in bulk) and then sell to retailers in wholesale prices (cheap as you are buying in bulk). These products are usually stored in warehouses and wholesaled by plenty of retailers. With the rapid development of network's technology and E-commerce, wholesalers gradually find the advantages of online sale. Thus more and more wholesalers begin to sell their products via b2b commerce platforms.

Retailers

Retailers always buy small quantities of products from wholesalers and then sell to consumers(people) for direct profit. They sell at a higher prices - taking the cut in margin. And they usually has a storefront to sell to customers. They usually has a storefront to sell to customers. Some of them also have their own b2b commerce marketplaces.