Although both work in similar roles along the supply chain, wholesalers and distributors serve different types of customers.
Selling products in bulk to merchants so they can resell to individual consumers is known as wholesaling. Conversely, distributors can collaborate with producers as well as retailers to make the flow of goods easier.
In this post we will try to understand both these and also the differences between these two terms.
Since these days most businesses prefer to import various products made in China wholesale hence it is important to have a proper clarity.
What do wholesalers do?
The job of a wholesaler is to buy items in bulk quantity from manufacturers and then sell them to any retailers. They usually maintain good relations with many retailers.
Typically, wholesalers focus on certain markets and don’t have formal agreements with distributors or manufacturers.
Instead, they make purchases only when necessary and resell them at higher prices per unit.
What do distributors do?
Distributors typically engage directly with manufacturers under contract, often serving as strategic partners rather than mere B2B customers.
They play a crucial role in expanding a manufacturer’s market reach, such as assisting a French ski glove manufacturer in entering the UK market.
Distributors handle stock management and logistics, forecasting demand and shipping products to retailers promptly.
Like wholesalers, they shoulder the risk of overstocking while simplifying logistics, earning profits by selling at higher prices.
Distributors’ roles can vary widely, including acting as online direct-to-consumer retailers alongside facilitating wholesaler and retailer relationships.
Because a retailer does not have the same direct relationship and connection with manufacturers as a wholesaler, they are forced to charge a greater price for their goods or products.
The merchant also has to worry about little things like staff pay, store rent, sales tax, and product advertising for the items they sell in-store.
But, because they may discard faulty goods and only retain desirable items, retailers are able to select higher-quality products than wholesalers.
This is so that the store can select the things they want and maintain control over the quality of each item because they buy in such small amounts.
The wholesaler is unable to guarantee the best quality since they must take the items or products in bulk.
Which is the better option between a distributor and a wholesaler?
There are benefits to both choices. You can save money on storage charges since wholesalers store the goods they purchase from you.
Distributors help you sell your goods and are partially in charge of building customer relationships. The path you take will rely on your industry and type of business.
Hire a sourcing company in China
As we mentioned before, that China has emerged as a big market over the last few years. However, without taking any help of a trustworthy sourcing company in China, it is very difficult to have smooth business.
Maple Sourcing Ltd is one of the trusted names in the China Sourcing market and the company’s MD Aaron Li has helped this company to grow to a new height because of his vision.
You can tie out with this company, if you are interested in doing long-term business with Chinese wholesale company.
