A distributor is a business that buys goods in large quantities from a manufacturer and resells them to retailers, resellers, or end businesses, usually within a defined territory. Distributors take ownership of the inventory they buy, then handle warehousing, logistics, credit terms, and local market coverage on the manufacturer’s behalf. They sit in the middle of the supply chain, between the people who make products and the businesses that sell or use them.
How it works
A manufacturer sells to a distributor at a wholesale or distributor price. The distributor stocks the goods, breaks bulk shipments into smaller order sizes, and sells to its own customer base at a markup. Because the distributor holds inventory and often extends payment terms (net 30, net 60), it absorbs risk and cash flow pressure that the manufacturer would otherwise carry. Many distributors also add services like technical support, returns handling, and regional delivery.
Distributor vs wholesaler
The terms overlap, but a distributor usually has a formal relationship with the manufacturer, often exclusive to a territory or product line, and may commit to volume targets. A wholesaler tends to buy from many sources and sell to anyone, without that tied relationship. See related terms in the B2B quoting glossary.
Why it matters for quoting
Distributors run on negotiated, account-specific pricing rather than fixed retail prices. A retailer asking a distributor for 500 units expects a quote that reflects their tier, volume, and terms, not a checkout price. If you sell wholesale through Shopify, this is where quoting fits: a buyer requests pricing, you build the quote against their account, and they accept and pay through your store. That keeps distributor pricing off your public storefront while still closing the order in Shopify.
Example
A power tool manufacturer appoints a distributor for the Midwest. The distributor stocks 10,000 units, sells to hardware stores and contractors in the region, offers net 30 terms, and delivers within two days. The manufacturer gets regional reach without running warehouses or a local sales team.