Difference between wholesaler and distributor

Posted By: Sm Adminon: December 23, 2015In: Miscellaneous

Wholesaler:
Wholesaler is a person or firm that buys large quantity of goods from various producers or vendors, warehouses them and resells to retailers. It is the link between producers and retailers. It buys the goods in large quantities from producers and sells in small quantities to the retailers rather than consumers. A wholesaler performs various functions. The wholesaler gets the contract for the purchase of goods from the retailers and receives a commission.
Distributor:
Wholesalers who carry only non-competing goods or lines are distributors. An entity that buys non-competing products or product lines, warehouses them and resells them to retailers or direct to the end users or consumers. Most distributors provide strong manpower and cash support to the supplier or manufacturer’s promotional efforts. They also provide range of services to their customers.
Differences:

Basis	Wholesaler	Distributor
Definition (www.oxforddictionaries.com)	The business of selling of goods in large quantities and at low prices, typically to be sold on by retailers at a profit	An agent who supplies goods to retailers
Synonyms	Abundant, massive, abounding, sweeping, complete, widespread	Agent, salesperson, allocator, middleman, importer, broker
Antonyms	Acquire, appreciate, bargain, become, achieve	Aggregator, bearer, archivist, concealer, buyer, antiquary
Types	The types of wholesaler are: Merchant wholesalers General wholesalers Speciality wholesalers Specific product wholesalers Discount wholesalers Drop ship wholesalers On-line wholesalers	The types of distributors are: Intensive distributors Selective distributors Exclusive distributors Direct distributors
Word origin	The word wholesaler was originated from Late Middle English: originally as by whole sale ‘in large quantities’.	The word distributor was originated in between 1520-30.
Store	They store the goods and products.	They don’t store the goods, they directly distribute them.
Pronunciation	Eng (UK): /ˈhəʊlseɪl/ Eng (US): /ˈhōlˌsāl/	Eng (UK): /dɪˈstrɪbjʊtə/ Eng (US): /dəˈstribyədər/
Serves	The wholesaler serves only to the respective users.	The distributor serves both the retailer and wholesaler.
Link	They are the link between producer and distributor.	They are the link between manufacturer and retailer.
Supply	They may sell similar types of products.	They typically supply huge range of contrasting products.
Sell	They probably sell the goods to the consumers.	They are the one who directly buys the products and goods from the manufacturers.
Advantages/Benefits	The advantages are: Provide access to products Provide access to markets	The advantages are: Established customer base Sales and marketing expertise Storage and logistics Wider distribution channel Quick route to market
Disadvantages	Its disadvantages are: Capital Quantity Discount Competitive pricing Big storage	Its disadvantages are: Cost and speed Inventory Innovation Staff and administrative training
Example in Sentence	The retail price is usually the double of wholesale price. The wholesale price increased.	Harrison’s is the sole distributor in our area. They were the top distributor of my favorite product.