Difference Between Wholesaler and Distributor of FMCG Goods

Today, the FMCG industry has become a dominating industry in the world. With the enormous demand for these products, there is a big opportunity for distributors and wholesalers to maintain a consistent supply of the FMCG products in the market. However, most people don’t know the difference between a wholesaler and a distributor and often mistakenly understand that both are the same. But that is not the truth, as they are very different from their base. Let’s talk about knowing the difference between wholesalers and distributors of FMCG goods. Here we go!

What is a Wholesaler?

FMCG wholesalers are intermediaries between distributors and FMCG stores who wish to buy FMCG products in bulk. They play a vital role in the supply chain network, and help FMCG companies deliver their products to the end consumers. For example, a wholesaler buys products in bulk from FMCG distributors and then sells them in smaller quantities to other businesses.

What is a Distributor?

An FMCG distributor plays the role of a middleman in the supply chain network. They connect manufacturers to wholesalers and ensure smooth distribution of the FMCG products. Basically, distributor companies buy their products in bulk directly from the manufacturers and then sell them in small quantities to wholesalers at wholesale rates.

However, they not only contribute to making the products available but also help you in physically moving them through their logistics network. For example, Treasure Orbit Group supplies products in bulk from FMCG company and then not only resells them but also transports the products from one place to another.

Difference between Wholesaler and Distributor of FMCG Goods

Nowadays, people often get confused in understanding the difference between distributors and wholesalers, as both provide products in bulk. However, it is not right to consider them same as both have different functions and responsibilities. Let’s understand the difference between wholesaler and distributor:

Operations

Wholesalers are primarily responsible for purchasing goods from distributors and reselling them in bulk to other businesses. They do not have any direct relationship with the FMCG companies. That gives them scope to source the products from multiple distributors of different product categories to make profits.

Distributors go beyond wholesalers and cover many areas of supply chain management. They basically maintain close relationships with FMCG manufacturing companies and help them to market their products. With that, they also perform other tasks like promoting and marketing the product or brand.

Agreements

Wholesalers rarely have any tie-ups with FMCG companies. This gives them the freedom to do not stick to a single brand. They tie up with multiple the**** best FMCG distributors in Hong Kong**** to get wide range of products. With this approach, they become a flexible option to get a complete solution in one place.

On the other hand, distributor companies work under an agreement with an FMCG company. They have products of selective brands like Unilever, Nestlé, Snickers, M&M’s, Milka chocolates, and more. With the proper management of their smooth transportation and distribution network, they transport the products in bulk quantities to the wholesalers and also adhere to the specific terms and conditions mentioned in the contract with the manufacturers.

Exclusivity

Wholesalers are not exclusive and sell their products across different brands and product categories. From food to toiletries, they can sell anything in the market in order to get benefits. Their method is to work independently and sell different products based on their popularity in the market and market price. Along with this, wholesalers provide people a flexible option to get their products.

Distributors, on the other hand, have exclusive rights to sell the products. This is why they deal with few companies and transport and distribute their products in different parts of the world. For example, Treasure Orbit Group deals with brands like Unilever, Nestlé, Snickers, M&M’s, and more.

Management

The main difference between a wholesaler and a distributor lies in how they manage and handle products in the supply chain. Wholesalers may not require management from FMCG companies. This allows them to operate without any restrictions. They distribute their products to different places and world territories.

FMCG distributors work closely with manufacturing companies and have agreements. That is why manufacturing companies monitor and manage the FMCG distributors. Before forming a partnership with a manufacturer, FMCG distributors check the experience and skills required to work for them. The distributor companies can also go through the process of reporting, goal setting, and incentives based on the manufacturer company. 

Last Words

Overall, we understood the difference between a wholesaler and a distributor. Talking about the various aspects of both, we can say that both are part of the supply chain network, but there are many fundamental differences between them. From operations to management, wholesalers and distributors in Hong Kong work differently while remain the important part of the supply chain. 

On the one hand, wholesalers depend on distributors and get products from them, while distributors distribute products from manufacturers and sell to wholesalers. This collaboration between them helps a small and large business to get FMCG products in bulk. Depending on your specific demands and requirements, you can connect with any of them.