Distributor

A company that buys products in bulk from manufacturers and resells them to retailers, wholesalers, or other businesses. Distributors handle storage, logistics, and delivery, acting as a middleman between who makes the product and who sells it to customers. They typically work with many brands and manage the supply chain for a specific region or product category.

Why it matters

If you want your product in stores beyond your direct reach, distributors are often the only practical path, they have the warehouse space, delivery network, and retail relationships you don't have starting out. Understanding how distributors work helps you decide whether to pursue this channel and what margins you'll need to offer them to make the partnership worthwhile.

What Distributor is not

A distributor is not a retailer; they don't sell directly to consumers. They're also not the same as a wholesaler, though the terms are sometimes used interchangeably; wholesalers typically sell in smaller quantities and may work directly with businesses, while distributors focus on moving large volumes through established supply chains.

Where this shows up

• Pitching your product to grocery or specialty stores
• Negotiating wholesale pricing and minimum orders
• Planning production quantities and cash flow
• Deciding between selling direct-to-consumer versus retail

Related terms

• Wholesaler similar middleman role but typically operates on smaller scale and may sell direct to small businesses
• Retailer the business that buys from distributors and sells the final product to consumers
• Margin or Markup the profit percentage you need to build in so the distributor can buy at a price that still leaves room for their own profit
• Minimum Order Quantity (MOQ) distributors typically require you to produce large batches to make the economics work for them