Difference between a distributor, a wholesaler and an agent?

Who can define the differences between these very common and important roles in interntional trade?

Looking for the best answer

Replying to [Admin]:
DISTRIBUTOR. is some one that buy in bulk, have physical stock of his products and distribute to retailer or user end consumners. Able to hold stocking products up to 1 years or more. Require large capital for investment, make the most profit.

WHOLESALER. is some one that buy in bulk have physical stock of products, and only sell in bulk at a smaller MOQ to distributor and retailer. Usually hold physical stock from 3 to 6 months. Require midium to large capital investment, make good profit.

AGENT. is some one that buy and sell in bulk, hold no physical stock of products. Require very little capital investment, working on commission more than on profit base.

Replying to [Admin]:
Distributor : Performs the function of distribution using various channels of distribution. These may include wholesales, retailers and to end users(Consumers). He may or may not take physical delivery of the product and may not invest in inventory. He plays a very key role in the Distribution chain connecting Manufacturers and cunsumers.
Wholesalers : Buy in bulk directly from the manufacturers or distributors and earn their profits because they can get volume discounts that is not available to retailers or end users. They need to invest and have the goods closer to the point of consumption.
Retailers : The perform a very important role of bringing the product in physical proximity to the consumer and providing a variety of choice to the consumer. (not in your question)
Agent : He could be a buying Agent or Selling Agent or Double agent or a Diabolic Agent (Resembles our Mr.James Bond). What an agent persforms is verymuch defined by the Agency agreement that he/she contracts with the Buyer or Seller. He earns his money either from the Buyer or from the Seller or sometimes from both by marking up the prices or taking a "Cut" of the profits. Some times he/she does nothing other than a simple introduction between the buyer and seller and collects what is known as "an introduction fee". Agent is a middleman who must earn his keep by adding value. With the advent of internatioanl communciation and sites like Alibaba Agents are dying out in large numbers and can be called an "Endangered Species"

Sukumar Sivaraman
Let your Joy and Pleasure be my BLISS!

A distributor is a party who purchases goods from a supplier for inventory and re-sale to third parties.

wholesalers are usually very big organisations and therefore hold a lot of stock. Their money is made by the quantity they sell, rather than the price per unit, therefore many wholesalers may impose a minimum order quantity or a minimum purchase amount. What you have to understand is that, most, if not all wholesalers will give you a better price per unit when you are buying larger quantities. When planning your purchasing take this into consideration

agents usually are small organization or indivuduals that makes formal agreements with manufacturers to sell their products to other people or business in their native country. They usualy dont invest anything making good profit from sales gain by a comission.

Replying to [Sivaras ]: Thank you for all your explanation. I am newbie here. It is do great help me!

Replying to [Admin]:A Distributor Imports, stores and distributes the products.

A Wholesaler collects the goods from the Distributor and sells.

An agent directly makes the arrangement from the exporter or his assigned distributor and then makes his own arrangement to sell and market the goods.

Dear Distributor, Wholesaler and Agents,

How are you all?

Distributor is an organisation or firm which deals in distributing the products or services to the desired destinations like wholesalers or retailors. There is and agreement with the supplier or manufacturer that similar type of products cannot be distribited by this firm.

Wholesaler is a person or organisation who directly sells to the retailors. A wholesaler is a middleman between supplier and retailers.

Agent is one who is directly linked with the buyer, wholesaler, distributor and acts as a middleman to source and particular type of products in an commission or consultancy.

regards,

amit

Replying to [Admin]:

Distributor:

A person of a company which is appointed by company and responsible for the distribution of a product in a designated area and in any area only one distributer will be exisit


Whole Saller


A person a company deisgnated by distributer or company in any area whole saller can be one or more


Agent:


Who perform the services in between Buyer and Saller




Thanks




Muhammad Bilal Farooq

Replying to [Admin]:
Distributor:
Firm or individual, who sells or delivers merchandise to customers, such as retail stores. Distributors act as intermediaries between manufacturers and retailers. They maintain a warehouse of merchandise, which is often purchased from many different manufacturers and then is sold (or distributed) among various retailers. By buying through a distributor, a retailer can have the advantage of one-stop shopping, rather than having to make individual stock purchases from each of the different manufacturers.

Wholesaler:
Business that buys goods from manufacturers and that sells goods, usually in large quantities to retailers, who in turn sell them to the end user. Virtually everything sold on a retail basis can be purchased from a wholesaler, who acts as middleman between the manufacturer (or owner, as in the case of list rentals) and the retailer. Wholesalers help manufacturers by absorbing some of the costs of sales and distribution, and allow manufacturers to concentrate their resources on manufacturing.

Agent:
An individual or firm that places securities transactions for clients.

regards,
am

Replying to [Admin]: I think in international market we can use these terms interchangably, However in local market i.e. in India, the chain will be as follows

Manufacturer - Distributor - Wholeseller - Retailer - Final customer

Whereas the Agent is a middleman can take his margin anywhere in between, i mean he can act as a bridge between any of the two i.e.
Manufacturer -trader
trader -retailer
mfrr-customer
etc.

Replying to [Admin]:a distributor is one who has outlets and facilities for procuring and selling goods to consumers,a wholsaler is one who buys goods in bulk while an agent is one who has the locus standi to act on behalf of his principal.