What are the differences between wholesale and distribution?

In terms of market, wholesale is comprehended as a kind of business that purchases a huge amount of products from a manufacturer and then sells those products in retail stores at reasonable prices.

According to experts, distribution is the process that a business follows when acting as a middleman between manufacturers and retailers. The people that are in charge of developing this process are named distributors or suppliers.

Nevertheless, sometimes the difference among both terms become so near that is difficult for people to distinguish. It is caused by misunderstandings on Internet because some people combine both words in the same sentence and mix both sense.

Useful information about wholesale

Wholesaling businesses normally cover just one type of product. In other words, they are specialized in one area in order to be as much competitive as possible. For example we can find business specialized in electrical wholesaling. As the area is quite broad, they can offer a wide range of products related to electronic issues. Generally speaking, bulk business sells their products at the lowest prices to other companies that also sell the product or use it in their daily life.

Cash and carry wholesale business

This is another version of deal. Cash and carry wholesalers are storehouses where people from medium or small business can access to buy their basic products at bulk prices. For example, hotels or hospitals are a good example because they need to buy huge quantities of products but they won’t sell them to a retailer. They just will use it in their daily service.

More information about distribution tasks

The distributor has two very differentiate tasks:

  1. Buy products in bulk to a manufacturer (large quantities)
  2. Sell these products to a retailer, the person who resells them you last consumers.

Nevertheless, being a distributor carries out other type of activities that are implied. For example it is logistic work or storehouse so as to keep the merchandise. Usually, a supplier sells their products at lower prices because products are supposed to be bought in big quantities. However, the prices depend on taxes and arrangements with manufacturers.

Why are both terms still confused?

The majority of services that distributors and wholesalers offer are really similar. Both business store and deliver products but in different ways. Manufacturers control the stock and create more while distributors control their stock buying more products to manufacturers.

Where can I find more information?

Shopify is a really well-known distribution business that counts on the best suppliers. In its website you will find more information about both areas and you are also able to create your own business. Moreover, as a retailer you will find also relevant information on how to search the best suppliers or where to find the best products. Shopify is a complete tool that help online stores in order to spread online wholesale. Online bulk is full of advantages as everything is automated. Distributors are able to save money and retailers can obtain products at lower prices.