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Understanding the Different Types of Suppliers
Published at 2012-10-07 17:05:12
When starting your wholesale business, you should have a clear idea of your business needs in terms of demand and supply. This page lists the different types of suppliers involved in this business.

Who are Manufacturers and Vendors?

They produce the products and present them for purchase in bulk. The finished products have the idea, research, and effort put in by the manufacturers and vendors before coming up for sale. The products are purchased by distributors, retailers, wholesalers, resellers, etc. at cheap prices and are sold at a profit.

Wholesalers and. Distributors

They buy in bulk from different manufacturers and vendors; and keep the merchandise in warehouses for reselling these goods to local small distributors, wholesalers and retailers. Government departments and large organizations may also buy products in large quantities from wholesalers and distributors. Such wholesale suppliers require VAT or Tax ID number from purchasers and operate differently from discount retailers, resellers and online wholesalers.

Ever Heard of Affiliate Merchants?

Affiliate merchants sell their products online through banner ads and website links, which are posted on the web through a chain of affiliates. The affiliate merchants are paid per visit to the website and also if the product is sold through their link.

What about Franchisors?

Franchisors are business owners who through an agreement and at a price allow an individual for using their name, trademark, training, business know how, etc. the individual develops his own business with the benefit of already established franchisor’s business system.

Importers vs. Exporters

Such suppliers either purchase products from manufacturers in a foreign country and import them to their own country; or export products from their country to some other country. They may travel abroad to deal directly with suppliers abroad.

Then, there are Independent Crafts People…

They are producers of self-designed or unique products which are manufactured on a small scale. These products are usually sold directly to retailers or individual customers through agents or trade shows.

Who are Drop Shippers?

Drop shippers are in contact with one or more supply companies and deliver their products directly to the buyer after the purchase has been made.