1. The classic supply chain
Goods move right. Money moves left. Each step adds a margin.
2. Every role, one card each
Grouped by what they do. Colors match the legend above.
🌾 Supplier / Vendor
Sells raw materials, parts, or services to a business. "Vendor" is the general word for anyone you buy from.
🏭 Manufacturer
Makes the finished product. Often does not sell to the public directly.
⚙️ OEM
Original Equipment Manufacturer. Makes parts or products that another company sells under its own name.
🏷️ Private / White label
One company makes a generic product. A different company puts its own brand on it.
™️ Brand owner
Owns the name, design, and marketing. May outsource all the making.
🚚 Distributor
Buys from manufacturers, stores stock, and delivers to many sellers. Often has an exclusive deal for a region or product line. Adds services like support and marketing.
📦 Wholesaler
Buys in big amounts, sells in smaller (still bulk) amounts to retailers or businesses. Usually not exclusive. Carries many brands.
🚢 Importer / Exporter
Moves goods across borders and handles customs, duties, and local rules.
🤝 Broker / Agent
Connects buyer and seller for a commission. Never owns the goods.
🏗️ 3PL
Third-Party Logistics. Stores, packs, and ships for others. Does not buy or own the goods.
🏬 Retailer
Sells single items to the public, in a store or online.
🔁 Reseller
Buys a product and sells it again, often online. A broad word that covers retailers too.
🧩 VAR
Value-Added Reseller. Resells a product with extra setup, software, or service bundled in.
🚗 Dealer
A retailer authorized by a brand, often for big-ticket items. Usually also does service and repairs.
🍔 Franchisee
Runs a store under another company's brand and system, and pays fees for it.
📮 Drop-shipper
Sells online but holds no stock. The supplier ships straight to the buyer.
🛒 Marketplace
A platform where other sellers list goods. Takes a fee, may not own the stock.
🧑 Consumer / End user
Buys the product to use it, not to sell it again.
3. Follow one product: a $100 pair of sneakers
Typical, rounded numbers. Each bar shows the price at that step.
4. Side by side
| Role | Owns the goods? | Buys from | Sells to | Order size | Earns by |
|---|---|---|---|---|---|
| Manufacturer | Yes | Suppliers | Distributors, wholesalers, retailers | Very large | Selling price minus cost to make |
| Distributor | Yes | Manufacturers | Wholesalers, retailers, businesses | Large | Margin plus services |
| Wholesaler | Yes | Manufacturers, distributors | Retailers, businesses | Medium to large | Bulk margin |
| Retailer | Yes | Wholesalers, distributors, brands | Consumers | One item | Retail markup |
| Broker / Agent | No | n/a | n/a (connects them) | Any | Commission |
| 3PL | No | n/a | n/a (moves goods) | Any | Storage and shipping fees |
| Drop-shipper | Briefly, on paper | Suppliers | Consumers | One item | Markup |
5. The confusing pairs
Distributor vs Wholesaler
A distributor has a close, often exclusive, deal with the manufacturer and does sales, support, and marketing. A wholesaler just buys low and sells in bulk, carries many brands, and has no special tie to any one.
Retailer vs Reseller
Every retailer is a reseller. "Reseller" is the broader term and is common in tech and online selling.
Supplier vs Vendor
Mostly the same. Supplier hints at early-chain inputs (parts, materials). Vendor is anyone who sells you something.
Manufacturer vs Brand
The manufacturer makes it. The brand owns the name. They can be the same company (Toyota) or different (Apple and Foxconn).
Dealer vs Retailer
A dealer is a retailer with an official link to a brand, usually for cars, machines, or high-value goods, plus service.
Distributor vs 3PL
A distributor buys and owns stock. A 3PL only stores and ships stock that someone else owns.
6. Ways to skip steps
Not every product uses the full chain.