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Difference between a trader,wholesaler and a distributor?

Discussion in 'General Wholesale' started by mitjaa, Jan 13, 2009.

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  1. mitjaa

    mitjaa

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    I would like to know the difference between a trader,wholesaler and a distributor?
  2. jonto15

    jonto15

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    Nov 12, 2007
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    Re: Whats the difference

    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
  3. mitjaa

    mitjaa

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    Re: Whats the difference

    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?
  4. jonto15

    jonto15

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    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
  5. mitjaa

    mitjaa

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    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!
  6. jonto15

    jonto15

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    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
  7. mitjaa

    mitjaa

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

    bondandco

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    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
  9. mitjaa

    mitjaa

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    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?
  10. TAP

    TAP

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    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.
  11. Pete

    Pete

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    There is no firm distribution chain for all companies.

    Normally it would be -

    Manufacturer
    Distributor
    Wholesaler
    Trader or Jobber or Retailer
    Consumer

    But it depends on the industry.

    With soft goods - clothing / towels and such / dry goods it is often direct from manufacturer to retailer. Some local wholesaler / jobber types with Cash and Carry operations may also buy and sell to the wagon hustlers and the carts on the street, etc.

    With name brand things it also depends. Many will have one franchised distributor per country who may make a profit even on direct shipments to stores - dropshipping at it's finest.

    The thing is there just is no one way that they all operate and different industries may call the same link in the chain by another name.

    So, in the long run what they are called is almost meaningless.

    Except for me, I'm a distributor of sunshine and wealth throughout the Internet.........
    .
  12. Buy360

    Buy360

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    Trader: the aim of the game is buy low, sell high directly competing with companies a,b,c selling to anyone who will buy you product no MOQ/ very low MOQ.

    Wholesaler: the guys who make the world work! they have massive warehouses or a shed and they store an inventory of goods which is sold 'trade only' acting as a middleman if you like selling in bulk quantities no messing about, tend to handle distribution.

    Distributor: anyone that supplies to the retailer ie. as i said before the wholesaler is a distributor.


    some examples of chain

    (ideal world)

    manufacturer --> distributor --> wholesaler --> retailer --> customer

    (common chain)

    manufacturer --> distributor/wholesaler --> retailer --> customer

    (large buying power retailer ie. tesco may source some products this way)

    manufacturer --> retailer --> customer

    (online trader trends)

    manufacturer --> distributor --> wholesaler --> wholesaler 2 --> wholesaler 3 --> wholesaler 4 --> wholesaler 5 --> retailer --> customer
  13. businessbeforep

    businessbeforep Banned Member

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    middle man within a middle man :)
  14. rock-li

    rock-li Banned Member

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    oh!thanks
    i have some questions
    if i export. i am a distributor or wholesaler?
  15. Pete

    Pete

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    You are an exporter.

    You can be King, you can be Distributor, you can be Master Distributor of the Universe. It doesn't matter what you call yourself.
    .
  16. DEI

    DEI

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    well the distributor is a wholesaler aswell as they usually keep huge stock quantities such as 500units (of one product). In fact its not that easy to become a distributor they have high requirements for example HP requires 250,000 usd spent in another distributor so they can proceed all your details and add You into their spread chain. There's lot of advanteges of being distributor such as: getting products from manufacturer,getting high quantity volumes,getting the stock with late payment terms (the biggest advantage). And basiclly they will help you to sell your stock (may advertise You).

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