A wholesaler represents a person or company that purchases large quantities of products and sells them in bulk to retailers. In terms of their role within the supply chain, wholesalers typically buy goods from distributors, though they sometimes purchase directly from manufacturers.

Although the terms might be incorrectly used interchangeably, a wholesaler is not the same as a distributor. A wholesaler only buys goods wholesale, then sells them in smaller quantities. Wholesalers don’t have contracts with manufacturers and usually serve retailers in a limited area.

A distributor works closely with a manufacturer in order to sell more goods and gain better visibility on these goods. Distributors find wholesalers who will resale their products. A wholesaler works more closely with retailers to match their needs through buying products in bulk at a discount.

Wholesaler is a trader, who buys goods in bulk quantities and sell it in smaller ones. On the other hand, distributors are the reseller of products, which cover a specific area or market.

The distributor is the manufacture’s direct point of contact for prospective buyers of certain products. Wholesalers buy a large quantity of products directly from distributors. Retailer buy small quantities of an item from a distributor or a wholesaler.