Business

Difference Between Vendor and Supplier

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Main Difference

The difference between a vendor and a supplier is that a vendor is a person or company that supplies goods to the people directly. While the supplier is a person or organization that provides goods from the company to the vendor (most probably)

Vendor vs. Supplier

A vendor is a person or a company that supplies goods or, in other words, that sell the goods. When it comes to the supplier, it is directly related to the manufacturers. A supplier may be both manufacturer and provider at the same time too. But if the supply involves another party, the second last, the party/ person/ organization, is known as a vendor. For a better explanation, we may take an example if a company manufactures edibles and then send those to the market. The person or group of people supplying them to the market could either be a member of the manufacturing company or some other group of people who are hired to supply good to market. Once the edibles reach different stores at a market, these are then sold by the shopkeeper; here, a shopkeeper is the vendor. We may say that is business terminology, the person whose business is concerned from company to consumers (B2C) directly is known as a vendor. Whereas, the person whose business is associated with ‘business to business’ (B2B) is known as a supplier.

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Comparison Chart

VendorSupplier
A vendor is a person or a company that offers something for sale.A supplier is a person or company that provides something needed from the manufacturers.
Sort of Business
In business, language vendors are usually classified as B2C. which means it is directly associated with the business to consumerWhereas, in business, language suppliers are generally classified as B2B. Which means it is linked from one’s business to others.
Supplying Order
The vendor is the last person that sells the product to the customer.The supplier is the first person that takes the product to the vendors.
Objective
A vendor provides the good to the public. He sells the product or provides the goods directly.The objective of the supplier is to provide the market with the products needed and demanded by the people
Aim of sale
Vendors purchase the product for selling purposes only.Suppliers usually deal with the product exchange, or we may say the transportation of the product. From manufacturers to the vendors
Quantity
Usually, vendors have a small selling scale with respect to time.Suppliers are directly related to manufacturers so; the order supplied is usually in bulk.
Relation to the Manufacturer
Manufacturers are linked to Vendors through the suppliers. Hence it’s an indirect relation.Manufacturers and Suppliers are directly related to each other.
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Who is a Vendor?

A vendor is a person or a company that supplies goods to the people. To make it simpler, we may take the example of vendors from our daily lives. For example, the ice-cream seller in the street is a vendor, a shopkeeper is a vendor that sells many products, or if we go onto a larger scale Amazon, eBay, OLX, etc. are the vendors that provide goods to the customers. The vendors get connected to the manufacturers through a third party known as a supplier. The sale scale, i.e., bulk or small, depends upon the vendor’s market scale.

Who is a Supplier?

A supplier is a person or an organization that is responsible for providing the products to the vendor. Suppliers usually deal with the product delivery to the one who shall further sell it. If a vendor sells the object for further resale, he may not be called a vendor anymore. As the one, who sells products for resale is called the supplier. The supplier has a direct relation to the manufacturers and direct relation to the vendors too. In other words, it connects the market to the manufacturers.

Key differences:

  1. A person or company that delivers goods to the vendor is known as a supplier, and the person or company that sells it to the consumers is known as the vendors.
  2. Vendors are connected to the manufacturers via suppliers.
  3. Suppliers do sell the product for resale purposes, whereas; the vendors have a direct association with the consumers.
  4. Usually, the terms B2B is used for the suppliers and B2C for the vendors. But it’s not necessary for the vendor to be B2C only because the one who makes handicraft or street food and then sell himself to the consumers is also a vendor, until unless the products sold by him are not for the resale purpose.

Conclusion

If a vendor provides goods for resale, he would be no more a vendor but a supplier instead. Similarly, if a supplier directly provides goods to the consumer, he would not be called supplier at that time but the vendor instead. So it can be concluded that either its supplier or vendor the job is the same; providing goods to the people. But the difference is to whom and for what purpose is the good being supplied. If it is for the consumer, it’s from the vendor, and if it is for resale or business, it is from the supplier.

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