What is a Distributor?

/ˈdɪstrɪbjuːtə/
Noun

A distributor is a key player in the B2B supply chain, responsible for purchasing goods from manufacturers or wholesalers and reselling them — usually to retailers, resellers, or trade professionals. In the context of modern B2B eCommerce, a distributor often uses advanced distribution software to manage orders, inventory, and logistics efficiently.

Unlike general wholesalers, distributors frequently have exclusive agreements with manufacturers and may offer added services such as local warehousing, real-time inventory management, after-sales support, or credit terms. This makes them essential for scaling B2B sales in industries such as construction, automotive, electronics, and consumer goods.


Example in Practice:

“An electrical goods distributor may use a B2B eCommerce platform to offer real-time stock levels and next-day delivery to trade customers across the UK.”


Distributors vs Wholesalers in B2B eCommerce

In a B2B platform environment, the difference between a wholesaler and a distributor often comes down to the level of service and integration. A product distributor typically operates more strategically — handling marketing, regional exclusivity, returns, and fulfilment. The best B2B eCommerce software allows both distributors and wholesalers to sell directly to businesses without holding stock, thanks to inventory-free and dropshipping functionality.


Why Use a Digital Distribution Platform?

Modern B2B distributors increasingly rely on eCommerce platforms to:

  • Manage multiple sales channels

  • Sync supplier inventory in real time

  • Automate pricing and VAT invoicing (e.g., HMRC, VIES compliant)

  • Track performance across multiple warehouses or regions

  • Offer trade-only pricing, loyalty rewards, and custom catalogues

Choosing the right distribution platform helps streamline operations and improve cash flow — essential in today’s competitive wholesale environment.


Common Industries for Distributors:

  • Building materials & tools

  • FMCG and foodservice

  • Health & pharmaceuticals

  • Electronics and IT hardware

  • Industrial goods and components


Related Keywords & Phrases for SEO:

  • B2B distributor platform

  • Distribution software for wholesalers

  • Wholesale distributor UK

  • Multi-vendor B2B marketplace

  • Supply chain eCommerce solution

  • Dropshipping and stockless wholesale