I would like to know the difference between a trader,wholesaler and a distributor?

A distributor is someone who distributes for a factory and carrys large stock
A wholesaler is someone who sells bulk quantities at a cheaper price than a retailer
The trader is then the person who sells the products in small quantities

Correct me if im wrong

Originally Posted by jonto15

A distributor is someone who distributes for a factory and carrys large stock
A wholesaler is someone who sells bulk quantities at a cheaper price than a retailer
The trader is then the person who sells the products in small quantities

Correct me if im wrong

So the wholesaler buys from the distributor and sells to a traders and a retailer?In this case to who does the trader sell to?

The wholesaler doesnt have to buy from the distributor but sometimes that happens, and yes they then sell to the trader or retailer!
The trader then sells to anyone who wants to buy what he/she is selling

Originally Posted by jonto15

The wholesaler doesnt have to buy from the distributor but sometimes that happens, and yes they then sell to the trader or retailer!
The trader then sells to anyone who wants to buy what he/she is selling

Thanks for you're help.Let me give you an example.Nokia as a manufacturer makes the phones,then sells the phones to its distributors in various contries and then the distributor sells to retailes and retailer to us the consumers.Where do wholesaler and traders get involved?thats what i dont get!

The distributor can sell to the wholesaler and then the wholesaler sells to the retailer, although this doesnt happen all the time, it varies
The trader is normally inline with the retailer as they also buy from the wholesaler

Originally Posted by jonto15

The distributor can sell to the wholesaler and then the wholesaler sells to the retailer, although this doesnt happen all the time, it varies
The trader is normally inline with the retailer as they also buy from the wholesaler

But there are litteraly hundreds of Nokia wholesalers out there,how come?Why dont they all just buy from the distributor?

The distributor does what it says on the tin.

At the top of the chain they literally do "Distribute" products accross various sources , wholesalers in a manner that will feed "so to speak" all areas they plan to sell to.

Once this is furfilled in effect you will have a more widespead of merchandise over a greater area.

Example of this is rather one million nokia phones sitting in one factory in london their will now be one hundred thousand phones sitting in 10 top cities in wholesalers accross England. For the simple fact London doesnt require 1 million phones!

Once the merchandise is spread accross the world / country in wholesalers hands then companys or traders can order and collect stock from the wholesalers then onto the consumers.

Generally speaking it works in this way , some circumstances vary but its literally just a simple process of breaking into smaller amounts of units further down the chain.

Imagine if the heirachy tree didnt work in this way and you skipped the wholesalers. The distributers would have some serious work on their hands dealing with smaller quantity orders and alot of them.

Its a matter of finding the easiest process to sell millions of goods all over the world.

Hope this helps.

Regards

John

Originally Posted by bondandco

The distributor does what it says on the tin.

At the top of the chain they literally do "Distribute" products accross various sources , wholesalers in a manner that will feed "so to speak" all areas they plan to sell to.

Once this is furfilled in effect you will have a more widespead of merchandise over a greater area.

Example of this is rather one million nokia phones sitting in one factory in london their will now be one hundred thousand phones sitting in 10 top cities in wholesalers accross England. For the simple fact London doesnt require 1 million phones!

Once the merchandise is spread accross the world / country in wholesalers hands then companys or traders can order and collect stock from the wholesalers then onto the consumers.

Generally speaking it works in this way , some circumstances vary but its literally just a simple process of breaking into smaller amounts of units further down the chain.

Imagine if the heirachy tree didnt work in this way and you skipped the wholesalers. The distributers would have some serious work on their hands dealing with smaller quantity orders and alot of them.

Its a matter of finding the easiest process to sell millions of goods all over the world.

Hope this helps.

Regards

John

OK,let me get this straight,distributor for Nokia in the UK rather the selling to every retailer in the UK it sells to different wholesaler in different parts of the UK and then that wholesaler sell to retailers in that area?

In this case where is the B2B business made?I mean you have websites meant for wholesalers to trade with each other,wholesalers selling to wholesalers.How does that work?

Originally Posted by mitjaa

But there are litteraly hundreds of Nokia wholesalers out there,how come?Why dont they all just buy from the distributor?

Because the distributor won't necessarily give you the best price. You the retailer can go direct to the distributor and buy a 1000 units. Or you can go to a wholesaler to buy your 1,000 units.

What you might find is that the wholesaler gives you a better price than the distributor because the wholesaler purchased 10,000 units from the distributor and got a better price from them.