Difference Between Wholesaler and Distributor of FMCG Goods

The difference between a wholesaler and a distributor can confuse most people. You may use these terms interchangeably, but technically, they are not the same at all. Suppose you are curious to know how both can differ from each other. In that case, this guide is dedicated to you. Here, we will explore the major differences between a wholesaler and a distributor of FMCG goods. Let’s get started!

Introduction to Wholesaler and Distributor

What is a wholesaler?

Wholesalers are intermediaries between FMCG manufacturers and retailers. They mainly purchase their goods in bulk from manufacturers or distributors and sell them to retailers and other businesses. 

Wholesalers can provide their products in bulk to local retailers, online stores, small and large companies, and even individuals. They have an infrastructure to store and handle large quantities of products without marketing involvement. For example, a wholesaler buys a large stock of Milka chocolates from an FMCG company. And then sell them in bulk to retailers, who sell them to customers at low prices.

What is a distributor?

Distributors are entities responsible for the logistics and distribution of manufactured products, from manufacturers to consumers. They have a strong team that ensures efficient movement of goods and manages transportation, warehousing, and inventory. 

The best FMCG distributors in UAE have strong connections with FMCG manufacturers and provide timely delivery and proper handling of products. They accept your bulk orders and efficiently transport them to you. For example, Treasure Orbit, a leading distribution company, delivers a large volume of Coca-Cola products to supermarkets, stores, and vending machines. And then fulfill their orders smoothly by handling logistics, warehousing, and other tasks.

Main Difference Between Wholesaler and Distributor

After discussing the basic introduction of wholesalers and distributors, it’s time to inspect the key features of each to understand the differences between them. Here you can explore these points to understand how wholesalers and distributors differ:

Operations

Wholesalers buy large stocks of products directly from FMCG manufacturers. Small and large retailers approach them and buy their products in bulk at low prices. In the process of wholesalers, there is no involvement in marketing or direct distribution to stores.

Distributors mainly concentrate on physically moving and delivering your products. They act as a bridge between consumers and FMCG manufacturers. They directly pick up your products from the FMCG company and ensure the products that you order from them reach your stores or businesses effectively. 

Agreements

Wholesalers may not have any agreements with FMCG companies. Their method is often to buy products in large quantities from multiple companies. And then sell them to retailers and businesses at low cost. Their focus is on wholesale transactions without providing marketing and after-sales support.

Distributors have tie-ups with top FMCG companies. They can also have direct associations with several manufacturing companies. They ensure the distribution of products from different brands to their consumers. With a product supply chain and management of inventory, the best FMCG distributors in the UAE are responsible for supplying products from FMCG manufacturers to retailers.

Exclusivity

Wholesalers work independently. And you can expect them to get products from different brands. They allow their consumers to gain flexibility when ordering their products. That means you can receive a range of FMCG goods, including food, toiletries, beverages, etc.

Distributors have exclusive rights to distribute certain brands. They provide their FMCG distributors services in specific regions to ensure consistent delivery of those products. For example, Treasure Orbit provides its services in the Middle East and beyond. They handle logistics, manage supply chains, and support product promotion.

Management

Wholesalers typically operate with greater independence. They manage their own stock, pricing, and delivery schedules. FMCG companies have less oversight of them.

On the other hand, distributors are expected to maintain strong communication with the FMCG company. This ensures meeting sales targets and alignment with strategies. These companies play a major role in maintaining brand standards and ensuring the provision of products in deprived areas.

Final Thoughts

Both distributors and wholesalers provide their export and import services to retailers, supermarkets, wholesalers, restaurants, hotels, convenience stores, pharmacies, e-commerce platforms, cafes, corporate offices, and hospitals. These industries play a vital role in the transportation of manufacturing products to local and global markets. And make sure people can make ends meet.

However, the only difference is that wholesalers provide their goods in bulk amounts at low rates. On the other hand, distributors are more focused on the delivery management and promotion of specific brands within designated territories. Distribution companies in the world are in high demand as they are more flexible and provide more cost-effectiveness than others. We hope this guide educates you about the difference between distributors and wholesalers, and now you can take their benefits based on what they are for.