Vendor

Key Highlights

• A Vendor is an individual or company that provides products and services to businesses or individuals at a cost.

• Types of vendors include manufacturer, wholesaler, retailer and service provider.

What is Vendor?

A Vendor is an individual or company that provides products and services to businesses or individuals at a cost. Vendors are typically organizations that are authorized to supply the goods, services, or technology that the customer needs.

Vendors can be found in many different industries, from retail to manufacturing and from healthcare to technology. Vendors provide customers with access to a wide range of options and often offer more competitive pricing compared to purchasing from a single supplier.

Key Features

• Vendors can sell all sorts of things: physical goods, digital items, or services.

• They might make products, sell them in bulk, or offer them directly to customers.

• Sometimes called “suppliers,” though suppliers often create goods, while vendors focus on selling them.

• Vendors work in different markets, like business-to-business (B2B), business-to-consumer (B2C), or business-to-government (B2G).

Examples

• A food truck selling tacos to hungry customers.

• A company fixing computers for businesses.

• A wholesaler supplying toys to a store.

• An online shop selling headphones to shoppers.

Types of Vendors

• Manufacturer: Makes products from raw materials and sells them to wholesalers or retailers.

• Wholesaler: Buys goods in bulk and sells them to retailers or sometimes customers.

• Retailer: Sells products directly to people for personal use.

• Service Provider: Provides services like consulting, repairs, or event planning.

Role in the Supply Chain

Vendors keep the supply chain moving by connecting products or services from their source to the final user. They might also add extras, like customer support, product setup, or customization, to make their offerings even better.