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.
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.