Distributor

Posted in Marketing and Strategy Terms, Total Reads: 932
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Definition: Distributor

A distributor is a middleman who buys goods from a company and sells them to retailers or directly to end consumers.


Transfer of goods from manufacturer directly to consumers is called direct distribution. And when there are a number of agents, distributor being one of them, between the manufacturer and the consumer, then it is called indirect distribution. Distributors are employed by many companies because they provide manpower and financial support to the manufacturer. They also offer after-sales service, product information, technical support, etc. However, he has no right to use the manufacturer’s name as a part of his business.

 

Eg – Agents selling Tupperware or Oriflame products are the distributors of those companies. These agents are not the manufacturers of those products. However, they buy these products from those companies and sell them to the consumers. They also replace the products in case of a fault in them, say broken lid of a plastic container.


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