Difference between a distributor, a wholesaler and an agent?
Post 52 of 93
Replying to [Admin]
Distributor - This party has an agreement with the supplier and he will sell the products of those particular supplier under their brand name and price list. The supplier is also giving sale target and commisssion to the distributor and he they are part of all legal claims related to the products of supplier. However they are not allowed to supply similar products of other supplier. Supplier is helping the distributor for brand promotion events.
Wholesaler - They are simply purchasing the material in bulk quantities and re-selling to third parties. They are doing this business with their own investment and risk.
Agent - Agent is a service provider he is exchanging informations between supplier and customer. He can avail the benefit from both side. He is only a link for co-ordination business between supplier and customer.
Post 53 of 93
Replying to [Admin]:
A distributor buys directly from the manufacturer and supplies to wholesalers at a higher cost. The distrubutors will buy the goods from the manufacturer and handle the shipping, stocking and cataloging of the goods.
A wholesaler buys from the manufacturer and supplies to the trade (Retailers and other distributors). It provides the function of warehousing, reassortment etc. and does not sell to the consumer.
An agent acts on behalf of the principle to sell goods to wholesalers, retailers and even consumers. For this function the agent receives an agent's commission. All legal implications of the acts by the agent is borne by the principle and thus the agent must always attempt to act in the best interest of the principal.
Post 54 of 93
Replying to [Admin]:
Distributor is something like your "wife" in international trading. You must choose the best distributor to live happily. Happy marriage brings happy, strong and healthy children. Happy relationship between distributor and the company results both mutually beneficial.
So we can define a Distributor as; a company, which is engaged in the general distribution or marketing of some article or class of goods that has exclusive rights to market, within a given territory and under the given time. A distributor serves the goods of a manufacturer or company and distributes to chain stores, retailers, pharmacies, etc. A distributor triggers mass marketing and results in high volume of sales.
A wholesaler is a person who makes the stocks of all related goods of different companies in a warehouse and distributes to smaller retailers than distributors.
An agent is a person or branch of the main company; that is authorized to act on another's behalf. An agent has wright to decide what to do and acts for the maximum benefit of the company in means of increasing company sales and recognition.
Post 55 of 93
Replying to [Admin]: well if there is no difference then why do we need these people only need is retailer,because a distributor is need to set up the market for the whole area which is not in capacity of the retailer or wholesaler ,where wholesaler reamians powerful in area which he is alloted ,retailer is confined to particular segment so naturally there should margin thin difference to be in market
Post 56 of 93
Replying to [Admin]:Distributers are selling products from many manufactories in many brands to many stores ,in many difference quantity between 6 to many,but wholesalers selling in large quantity only,but Agents almost selling products from a specified manufactories only,they can not sell other brands.
Post 57 of 93
Distributor: A person who has right to sell the products fabricated by a given company.
Wholesaler: A person who sell the products of many producers to other small companies.
Agent: A person who offers the products of his own company to other companies.
Post 58 of 93
Replying to [Admin]:
>Lots of people has already explained as amean of dictionarym. My guess of tip points.
>Distributor: Really has big capital and organisation. They are not only sell products to wholesaler and retailer but also make promotion about products. Distibutor makes aggreement from 1 year to ..... years and have to reach aggreed selling level. They also responsible for quaranty progress.
>Wholesaler: If they have mid capial, it's ok for them. They are awaking and not make any aggreement to restrict themselves. They check market, if market is ok pump goods. If not, change products easly than distributor. They dislike a rope in their neck.
>Dealer: Dealer is like a light sailing boat. They have to be fast so they must whatch strong winds. Observe the market, find approprite products as cheap and makes contact between buyer and seller and take commission. Best job for free and awaking guys.
>That's all...
Post 59 of 93
Replying to [Admin]:
Distributor is responsible for supplying the products to the whole seller. Whole seller is responsible to supply a product to the retailer and the Agent is a representative of a company/ firm who represents the product of that company.
Post 60 of 93
Replying to [Admin]:
Distributor : The company who distribute the trade goods on its region or country under distributorship contracts with the manufacturer companies.
Wholesaler : The company who makes import or export and transit export business in one country.
Agent : The company who takes all legal rights of one company or brand under an ageny contract in one country sometimes exclusive.
Post 61 of 93
Replying to [Admin]:A distributor will only take produsts from a producer to their intended markets.
A wholesaler will buy in bulk from a producer for resell to retailers
and An agent will sell on behalf of the producer