Difference between Vendor and Dealer

The supply chain is an interconnected system comprising a company's internal departments, external partners, and the products and services they provide. For one thing, a company can't thrive unless its products and services are in demand, and that demand comes from satisfied customers. Effective supply chain management not only helps businesses save money, provide better service to customers, and strengthen their bottom line, but it also helps grow the economy by creating new jobs.

Although consumers and manufacturers are the most crucial links in the supply chain, the remaining links—distributors, vendors, and retailers—are also crucial. Many individuals play the role of intermediaries in this procedure. People like vendors and dealers are examples of these kinds of people. Despite common usage, there is a difference between the two terms.

Who is a Vendor?

The distributor is the last link in the supply chain and is the person or company responsible for delivering the final product to the customer. The quality and legality of the goods sold by retailers to vendors are assured. In addition to this, they supply important data to consumers based on reviews of products and services. Vendors can meet the needs of the government, other businesses, and individual customers.

Who is a Dealer?

An intermediary between the producer and the end user, a dealer is someone who buys in bulk from the manufacturer and then resells the goods to the end user. Despite the fact that the supplier offers a number of benefits to dealers, such as aid for advertising, incentive programs, and product training, dealers are only allowed to deliver service within the parameters set by the provider.

Dealerships face stiff competition from their peers, so their owners must engage in customer care, ongoing discounts, and limited-time sales to attract and retain customers.

Similarities − Vendor and Dealer

  • Both serve in the capacity of feedback agents to the provider.

  • Both act as a link between the product's creator and the consumer who ultimately buys it.

Differences − Vendor and Dealer

The following table highlights how a Vendor is different from a Dealer −

Characteristics Vendor Dealer


A vendor is an individual or business that operates as a go-between for consumers and the manufacturers of a product.

A dealer is a middleman between the manufacturer and the final consumer. Therefore, a dealer acts as a go-between for the customer and the manufacturer or provider.


To ensure that the products and services they provide to final consumers are of high quality and in compliance with all the necessary standards, vendors must provide crucial information based on customer feedback.

Dealers not only provide vital insight into the ever-changing market but are also responsible for distributing the goods in their accounts.

Benefits from the supplier

When it comes to supporting, dealers are not particularly helpful to vendors.

Dealers can make use of the supplier's promotional resources, incentive programs, and product training, among other perks.

Product line

Vendors sell many different types of goods.

One single product line is available for dealers to transact with.

The region served

Vendors spread out across a vast area covering all sorts of merchandise.

A dealer is often only allowed to provide service to a limited geographic area.


A dealer is an individual who buys products in bulk from manufacturers and resells them to end users. A vendor is an individual or business that acts as an intermediary between manufacturers and end users of a product or service. In contrast, a distributor is a business that acts as a middleman between manufacturers and customers.

They both function as go-betweens for manufacturers and consumers, sharing vital market data and insights, but they differ in the goods they deal in, the areas in which they operate, and the compensation they get from manufacturers. But they both serve as sources of market data. In any case, these factors affect the accessibility of goods for buyers.

Updated on: 16-Dec-2022


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