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DISTRIBUTION

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WHAT IS THE DISTRIBUTION INDUSTRY?

A distributor is an entity that buys noncompeting products or product lines and sells them direct to end users or customers. Most distributors also provide a range of services such as technical support, warranty or service. Distributors are essential in helping reach markets manufacturers could not otherwise target.

 
 

Manufactureres

A manufacturer is a person or a registered company that makes finished products from raw materials in a bid to make a profit.

 

The goods are later distributed to wholesalers and retailers who then sell to customers.

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Wholesale

Wholesale purchase is almost always made in bulk, and because of that, you pay a discounted price for the purchase. After you buy products from a wholesaler, you can then sell them at your own store at a higher price to make a profit.

 

The difference between the retail and the wholesale prices is called the margin.

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Retai

A retail sale occurs when a business sells a product or service to an individual consumer for his or her own use.

 

The transaction itself can occur through a number of different sales channels, such as online, in a brick-and-mortar storefront, through direct sales, or direct mail.

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