Who Sells to Whom?

A visual guide to manufacturers, distributors, wholesalers, retailers, and the other roles that move a product from a factory to your hands.

1. The classic supply chain

Goods move right. Money moves left. Each step adds a margin.

Makes it Moves it in bulk Sells it to people Uses it
🌾
SupplierRaw materials and partsMakes
→
🏭
ManufacturerTurns parts into a productMakes
→
🚚
DistributorBuys in bulk, stores, delivers to a regionMoves
→
📦
WholesalerSells in bulk to shopsMoves
→
🏬
RetailerSells single items to the publicSells
→
🧑
ConsumerThe end userUses
Money flows back up the chainGoods flow down the chain →

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.

Example: A cotton farm selling to a T-shirt maker.

🏭 Manufacturer

Makes the finished product. Often does not sell to the public directly.

Example: Foxconn, Nestle, Toyota.

⚙️ OEM

Original Equipment Manufacturer. Makes parts or products that another company sells under its own name.

Example: Bosch making the brakes inside a BMW.

🏷️ Private / White label

One company makes a generic product. A different company puts its own brand on it.

Example: Costco Kirkland, Amazon Basics.

™️ Brand owner

Owns the name, design, and marketing. May outsource all the making.

Example: Apple, Nike.

🚚 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.

Example: Sysco (food), Ingram Micro (tech).

📦 Wholesaler

Buys in big amounts, sells in smaller (still bulk) amounts to retailers or businesses. Usually not exclusive. Carries many brands.

Example: A cash-and-carry store, McKesson.

🚢 Importer / Exporter

Moves goods across borders and handles customs, duties, and local rules.

Example: A firm that brings Italian olive oil into the US.

🤝 Broker / Agent

Connects buyer and seller for a commission. Never owns the goods.

Example: A food broker that gets a snack brand into grocery chains.

🏗️ 3PL

Third-Party Logistics. Stores, packs, and ships for others. Does not buy or own the goods.

Example: ShipBob, DHL Supply Chain, Amazon FBA.

🏬 Retailer

Sells single items to the public, in a store or online.

Example: Walmart, Target, your corner shop.

🔁 Reseller

Buys a product and sells it again, often online. A broad word that covers retailers too.

Example: An eBay or Amazon third-party seller.

🧩 VAR

Value-Added Reseller. Resells a product with extra setup, software, or service bundled in.

Example: An IT firm selling servers plus installation.

🚗 Dealer

A retailer authorized by a brand, often for big-ticket items. Usually also does service and repairs.

Example: A Ford car dealership.

🍔 Franchisee

Runs a store under another company's brand and system, and pays fees for it.

Example: A local McDonald's owner.

📮 Drop-shipper

Sells online but holds no stock. The supplier ships straight to the buyer.

Example: A Shopify store that ships from a supplier.

🛒 Marketplace

A platform where other sellers list goods. Takes a fee, may not own the stock.

Example: Etsy, Amazon Marketplace.

🧑 Consumer / End user

Buys the product to use it, not to sell it again.

Example: You, buying a phone.

3. Follow one product: a $100 pair of sneakers

Typical, rounded numbers. Each bar shows the price at that step.

🌾 Supplier
materials
$10
🏭 Manufacturer
factory cost
$25
™️ Brand sells to distributor
wholesale price
$45
🚚 Distributor to retailer
distributor margin
$55
🏬 Retailer to you
retail price (MSRP)
$100

4. Side by side

RoleOwns the goods?Buys fromSells toOrder sizeEarns by
ManufacturerYesSuppliersDistributors, wholesalers, retailersVery largeSelling price minus cost to make
DistributorYesManufacturersWholesalers, retailers, businessesLargeMargin plus services
WholesalerYesManufacturers, distributorsRetailers, businessesMedium to largeBulk margin
RetailerYesWholesalers, distributors, brandsConsumersOne itemRetail markup
Broker / AgentNon/an/a (connects them)AnyCommission
3PLNon/an/a (moves goods)AnyStorage and shipping fees
Drop-shipperBriefly, on paperSuppliersConsumersOne itemMarkup

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.

Classic (long chain)
Manufacturer → Distributor → Wholesaler → Retailer → Consumer
Big-box retail
Manufacturer → Retailer (Walmart, Costco) → Consumer
D2C (direct to consumer)
Brand → Consumer (Warby Parker, Tesla)
Drop-shipping
Store takes order → Supplier ships → Consumer
Marketplace + 3PL
Brand → 3PL / FBA → Marketplace → Consumer
B2B
Manufacturer → Distributor / VAR → Business customer