Wholesaler vs. Distributor vs. Supplier: What’s the Difference?

Embarking on your journey as a fashion store owner is exciting – but it can also feel daunting at times. You’re suddenly faced with so many new processes to understand and jargon to decipher. 

When it comes to PRODUCT SOURCING – a crucial part of running a fashion store – it’s hard to keep up with all the different routes you can take. 

But, if you want to be a truly savvy store owner, you need to fully understand the stages of the fashion supply chain and the roles of all the players involved. 

To help get you started, this article will explain the difference between three key pieces of the puzzle: wholesalers vs distributors vs suppliers. 

By the time you finish reading, you will understand exactly what the buying process entails. Plus, you’ll discover why wholesale marketplaces are the best way to buy clothing for your fashion store.

Ready to stock hot-selling styles from 100+ unique Australian brands? JOIN WHOLA now. 

WHAT DOES THE FASHION SUPPLY CHAIN INVOLVE?

The fashion supply chain is a system of organisations and processes involved in getting a fashion product to the consumer. It starts with sourcing raw materials and has seven main stages. 

Let’s explore each one and its role in maintaining the cycle:

• Raw materials: The fashion supply chain starts with raw materials that are turned into fabrics through techniques like spinning, weaving and dyeing. 
• Supplier: The supplier provides the manufacturer with the materials needed to manufacture clothing. 
• Manufacturer: The manufacturer turns textiles into items of clothing. Suppliers and manufacturers are often the same. 
• Distributor: The distributor acts as the point of contact between the manufacturer and the wholesaler. As an intermediary, the distributor’s role is to provide logistical and storage support and send items from the manufacturer to the wholesaler.
• Wholesaler: The wholesaler provides an easy way for retailers to order and purchase items of clothing in large quantities. Wholesalers sell clothing items in bulk which means they can offer lower prices to retailers. 
• Retailer: The retailer buys batches of clothing from the wholesaler and resells them at a physical or an online store. This is where consumers shop for fashion items. 
• Consumer: Finally, the consumer buys the clothing via a retailer, marking the end of the fashion supply chain.

Now that we’ve seen an overview of what the fashion supply chain looks like, let’s get deeper into the specifics of wholesalers vs distributors vs suppliers.

WHAT’S THE DIFFERENCE BETWEEN A WHOLESALER AND A DISTRIBUTOR?

Wholesalers and distributors are two key players in the fashion supply chain – and they work together. 

A distributor’s role is to connect manufacturers with wholesalers. They help manufacturers sell their products to wholesalers, who will then resell them to retailers. 

Essentially, a distributor’s job is to ensure visibility for the manufacturer’s products, which includes educating wholesalers about new product developments. As such, distributors play an active role in promoting the manufacturer’s products. 

Sometimes, distributors have exclusive buying agreements with manufacturers and act as their sole point of contact with wholesalers.

Wholesalers, on the other hand, are in charge of fulfilling the demand coming from retailers. They purchase fashion products from distributors in large quantities, then resell them to wholesalers in smaller quantities. 

Wholesalers work closely with retailers – both brick-and-mortar and e-commerce stores – and provide them with bulk discounts on packs of clothing and accessories.

WHAT’S THE DIFFERENCE BETWEEN A DISTRIBUTOR AND A SUPPLIER?

Distributors and suppliers have completely different roles and specialities.

A supplier (or manufacturer) kicks off the entire process of getting fashion items to the consumer by gathering the supplies and manufacturing the items of clothing. Suppliers “supply” the demand – they are at the very top of the supply chain. 

On the other hand, distributors are the ones who transport the clothing items to wholesalers or sometimes straight to retailers – they “distribute” the supply. Think of them as the middle of the supply chain between suppliers and wholesalers. Without distributors, nothing can move forward.

Suppliers and manufacturers don’t have the logistical knowledge or distribution network to be able to effectively distribute their products. Instead, distributors normally pay for the clothing and transport it to wholesalers or retailers who buy it from them. 

Conversely, distributors have the right channels and marketing experience to be able to effectively get the clothing from supplier/manufacturer to wholesaler. 

 

WHAT’S THE DIFFERENCE BETWEEN A WHOLESALER AND A SUPPLIER?

You may have heard some people use the words ‘supplier’ and ‘wholesaler’ interchangeably. However, in reality, their roles in the supply chain are quite different. 

A wholesaler may ‘supply’ clothing to retailers but is not the original source of those products. The clothes wholesalers supply to retailers have already gone through a few stages of the supply chain, from supplier to distributor and then to wholesaler. 

The wholesaler plays a crucial role as the middle man between the distributor and the retailer.

Wholesalers help distributors get their products out to retailers by bulk-buying products. And, they help retailers by providing clothing items at cheaper, wholesale prices. 

In most cases, wholesalers take care of transporting the products to retailers – or, in the case of online stores, straight to the consumer. 

As a fashion store owner, you have many different ways to FIND CLOTHING WHOLESALERS. You can go to in-person events like trade shows, or scour online communities and forums where fellow store owners share their favourite wholesalers. 

CAN YOU BUY WHOLESALE CLOTHING DIRECTLY FROM THE MANUFACTURER?

There are many different routes you can take when it comes to product sourcing – check out our guide to BUYING WHOLESALE CLOTHING FOR RESALE to learn more. 

It’s possible to purchase wholesale clothing directly from the manufacturer. However, this approach has some drawbacks compared to buying from wholesalers:

• Less variety of clothing: You may have to track down and purchase from several manufacturers in order to match the variety of labels that wholesalers usually have stocked all in one place.
• Surprise additional fees: The majority of clothing manufacturers are based abroad in countries such as China. Although this may initially mean cheaper prices for the clothing items themselves, it often leads to some shockingly expensive extra costs for transport and other fees that you may not be prepared for.
• Difficulty with communication and customer service: Since these manufacturers are often located in other countries, you may have to deal with language barriers making communication difficult. Furthermore, manufacturers aren’t as experienced in customer service, whereas wholesalers aim to offer their customers constant support.

All in all, buying from wholesalers is a better option for most fashion store owners than going straight to the manufacturer. You can explore our top 10 AUSTRALIAN CLOTHING WHOLESALERS here. 

THE BEST WAY TO BUY CLOTHING ITEMS FOR YOUR FASHION STORE: WHOLESALE MARKETPLACES

Wholesale marketplaces have become one of the most popular ways for retailers to purchase clothing ready to sell in their fashion stores. 

These websites gather tens – or even hundreds! – of wholesalers in one place, so you can shop from a huge variety of labels and styles. 

Whola is a B2B fashion marketplace that offers over 90 different Australian clothing brands in one place. You can stock your entire store from Whola, saving you time, money and hassle.  

Our curated collection of labels provides an exclusive pick of Australia’s hottest selling fast-to-market brands, which you can shop whenever and wherever you like. 

Unlike sales reps or agents, Whola doesn’t pressure you to buy. Instead, we give the buying power back to you so you can purchase from our 24/7 online store only what you need when you need it. 

Whola also ensures that you always have a unique retail mix by notifying you if a competitor in your area already stocks an item. 

THE BOTTOM LINE: WHOLESALER VS DISTRIBUTOR VS SUPPLIER

Embarking on your fashion retailer journey can be difficult when you don’t understand the difference between various roles in the fashion supply chain. We hope this article has answered all your questions. 

Here’s a quick recap:

• Suppliers start the supply chain by providing the materials and often manufacturing the clothing ready to be sent out by distributors. 
• Distributors take the clothing items and transport them to wholesalers in order to fulfil the demand. 
• Finally, wholesalers provide an easy way for retailers to order and purchase items of clothing in bulk, at wholesale prices. 
• Retailers then stock the clothing items in their fashion stores for customers to purchase and wear. 

Wholesale fashion marketplaces like Whola are the best way for retailers to buy their stock because they allow you to save time and money while making sure your store remains one-of-a-kind. 

Ready to stock hot-selling styles from 100+ unique Australian brands? JOIN WHOLA now.