- Definition: Wholesale Distributor
-
A agent or organization which acts as the sales and service representative for a manufacturer or supplier. This relationship is contractual with guidelines set by the manufacturer and mutually agreed upon by the distributor. As part of a "two step" distribution process, the distributor is compensated for the sale of product, normally in a certain geographical territory. The charge is transparent to the buyer as it becomes the total cost of the product being offered. In addition to the sale of goods, the "wholesale distributor" normally has the responsibility for customer satisfaction within their territory including returns and allowance which become a chargeback to the manufacturer or supplier. In a hardline business with "product failure" as a business component, the distributor is usually required to perform after-market services in cases of product malfunction where a product is warranted by the manufacturer for which the distributor is compensated financially.
Contributed By:
- Consumer Goods & Services
- Popular Topics in Consumer Goods & Services
- The Expertise Imperative and Compliance Technology
- Access to a diverse array of specialized expert inputs drives superior decisions in every organizational context: within corporations, by investors and consultancies, and within nonprofits. When decision makers are confident of their decision inputs, they can respond more quickly and creatively to challenges and opportunities.
This page may include content provided by Council Members, your access to which is subject to the Terms of Use.
