Distributors purchase products in bulk from manufacturers / vendors at trade prices and resell to retailers in smaller volumes to generate profit. The main benefit of distributors is the speed at which mass produced products can be sold through a network of resellers / retailers.
Distributors are typically located in a selected geographic area where they can easily distribute the products to resellers and retailers in the surrounding areas. Usually distributors will only sell to businesses such as resellers and retailers. Distributors do not usually sell directly to the end consumer.
The basic distribution channel for most industries is
Manufacturer / Vendor > Distributor / Wholesaler > Reseller / Retailer > End Consumer
Whilst distributors by definition distribute goods to resellers and retailers, they are in actual fact also technically resellers themselves as they resell goods purchased from manufacturers / vendors. For this reason distributors are often registered as both Merchants & Resellers on www.the-reseller-network.com.
Distributors carry a wide range of related or similar products, usually within one type of industry, but often from many different suppliers. Distributors are therefore well placed to add new products to their stock for retailers to consider buying.
Manufacturers / vendors, who bypass distributors to reduce the margins lost to the middleman, also lose the benefits of higher volumes of sales that distributors achieve through their existing customer base of resellers and retailers. Distributors can also eliminate the need for manufacturers to warehouse and deliver the product.
By registering a free reseller profile distributors can stay up to date and/or quickly and easily find new products and suppliers that add value and increase their revenue.
Distributors who are looking to expand their channel and increase sales should register as a merchant profile so that our network of resellers and retailers can make contact.