What is the difference between reseller and distributor?

Definitions

- Referring to a person or company that purchases products from a manufacturer or distributor and sells them to end-users. - Talking about a business that specializes in buying and selling products from different manufacturers or distributors. - Describing a company that buys products in bulk and then resells them to retailers or other resellers.

- Referring to a person or company that purchases products from a manufacturer and sells them to retailers or resellers. - Talking about a business that specializes in distributing products to different locations or markets. - Describing a company that buys products in bulk and then sells them to retailers or resellers.

List of Similarities

  • 1Both reseller and distributor are intermediaries between manufacturers and end-users.
  • 2Both purchase products in bulk from manufacturers.
  • 3Both sell products to retailers or other resellers.
  • 4Both play a crucial role in the supply chain process.
  • 5Both can operate in various industries, such as technology, retail, and manufacturing.

What is the difference?

  • 1Scope: Resellers typically focus on selling products to end-users, while distributors focus on selling products to retailers or other resellers.
  • 2Relationship with manufacturers: Resellers purchase products from manufacturers or distributors, while distributors purchase products directly from manufacturers.
  • 3Responsibility: Distributors are responsible for delivering products to retailers or resellers, while resellers are responsible for selling products to end-users.
  • 4Inventory: Distributors often maintain a larger inventory of products than resellers.
  • 5Pricing: Resellers may have more flexibility in pricing products than distributors.
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Remember this!

Reseller and distributor are both important players in the supply chain process, but they differ in their scope, relationship with manufacturers, responsibility, inventory, and pricing. Resellers purchase products from manufacturers or distributors and sell them to end-users, while distributors purchase products directly from manufacturers and sell them to retailers or other resellers. Distributors are responsible for delivering products to retailers or resellers, while resellers are responsible for selling products to end-users.

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