Friday, January 25, 2019

Difference Between Wholesalers And Distributors

Difference Between Wholesalers And Distributors
The main dissimilarities or difference between wholesalers and distributors can be highlighted as follows:
1. Introduction
Wholesalers: Traders or business men who buy large quantity of products from distributors and sell to retailers.
Distributors: They are the ones who supply or resell the products or services to wholesalers and retailers in a specific area

2. Link Between

Wholesalers: Between distributors and retailers
Distributors: Between producers and wholesalers

3. Relationship With Producers

Wholesalers: No direct relation
Distributors: Direct relation

4. Scope

Wholesalers: Limited scope of operation
Distributors: Wider scope of operation

5. Final Customers

Wholesalers: Retailers only
Distributors: Both wholesalers and retailers
difference-wholesalers-distributors


6. Promotional Activities

Wholesalers: They do not conduct any promotional activities
Distributors: They conduct various promotional activities

7. Range Of Products

Wholesalers: They deal with wide range of products
Distributors: They deal with limited types of products

 
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8. Functions

Wholesalers: Warehousing and selling
Distributors: Transporting and supplying

9. Investment 

Wholesalers: Requires less amount of investment than distributors
Distributors: Requires more investment than wholesalers.

Wholesalers Vs Distributors (Comparison Chart)

Basis For Difference

Wholesalers
Distributors
Introduction

Traders who purchase products from distributors or suppliers and sell to retailers
Traders who supply products to wholesalers and sometimes to retailers also
Link Between

Distributors and retailers
Producers and wholesalers
Direct relation with producer

No
Yes
Scope

Limited
Wider
Final Customers

Retailers
Wholesalers and retailers
Promotional Activities

No
Yes
Range Of Products

Wide
Limited
Functions

Warehousing and selling
Transporting and supplying
Investment Required

Less
High

I hope this post is helpful to understand the difference between wholesalers and distributors and to make comparison between them.