Glossary › Selling & Business › Distributor

🤝 Selling & Business term

Distributor

A company that buys products in bulk from a maker or brand and supplies them to shops, supermarkets or other businesses. The distributor owns the stock and earns the difference between its buying and selling price.

Where a distributor sits
🏭
Brand
→
🚚
Distributor
→
🏪
Shops
→
🛍️
Shoppers
Bigger reach, lower margin per unit
Distributors buy at wholesale prices and resell to retailers.

Common questions

What’s the difference between a distributor and a reseller?

A distributor usually sells to other businesses, such as shops and supermarkets. A reseller usually sells to consumers. Both buy the stock, unlike a sales agent.

What do distributors look for in a brand?

Consistent production, proper packaging and labelling, enough margin to allow a wholesale price, and the ability to meet minimum order quantities.

Can a home-based food business use a distributor?

Generally not for food. SFA doesn’t allow home-based food businesses to supply licensed food establishments, so distribution usually means moving production to a licensed facility.

Why it matters

A distributor can put your product into many shops at once, but you give up margin and some control over pricing and display.

🇸🇬 In Singapore

Distributors are common for packaged food, beverages, beauty and household brands supplying supermarkets and retail chains. For electronics, the official local distributor is also what makes a product a local set rather than a parallel import.

Tips before you sign

  • Check that your margin still works at the wholesale price.
  • Agree minimum orders, territory and exclusivity.
  • Ask how they will display and promote your product.

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