Retailer vs. Vendor — What's the Difference?

"Retailer" and "Vendor" are terms that refer to entities involved in the selling of goods and services but represent different stages and roles in the sales process. A retailer is a business or individual that sells goods directly to the consumer. Retailers purchase products from manufacturers or wholesalers and sell them to end-users or consumers, usually in smaller quantities, aiming to earn a profit on the markup. They play a crucial role in the distribution channel by making products available to consumers and providing a platform for product selection and purchase.

Conversely, a vendor is a broad term that refers to any individual or business that sells goods or services. A vendor can be a manufacturer, a wholesaler, or even a retailer, depending on the context. For example, in a business-to-business (B2B) setting, a manufacturer selling products to a retailer is the vendor. In this sense, the term "vendor" is more versatile and can be used to describe any seller in various contexts and levels of the supply chain, not restricted to selling to the end consumer.

In essence, while every retailer can be a vendor, not every vendor is a retailer. Retailers are specifically involved in the business-to-consumer (B2C) market, ensuring that consumers have access to products they need or want. They operate at the end of the supply chain, focusing on selling products to the final user, and are crucial in determining customer preferences and trends.

On the other hand, vendors operate at different levels of the supply chain and can sell to other businesses or directly to consumers. Vendors have a more comprehensive role, encompassing manufacturers, wholesalers, and retailers, and are integral to the movement and availability of goods and services across various markets and industries.