Legal Definitions - distributor

A distributor is a business that acts as an intermediary in the supply chain. They purchase products in bulk directly from manufacturers or producers and then sell those products to other businesses, such as retailers, commercial enterprises, or institutional clients, rather than selling directly to individual consumers. Their primary function is to facilitate the flow of goods from the point of production to the businesses that will either sell them to the end-user or use them for their own operations.

Here are some examples to illustrate the role of a distributor:

• Example 1: Consumer Electronics

  Imagine "TechBridge Inc." buys thousands of smartphones, laptops, and tablets directly from various electronics manufacturers in Asia. TechBridge Inc. then sells these devices in large quantities to major retail chains like "ElectroMart" and "Gadget World" across the country. These retail chains, in turn, sell the products to individual customers.

  This illustrates a distributor because TechBridge Inc. purchases goods from manufacturers and sells them primarily to retailers (ElectroMart, Gadget World), who are businesses, not the final individual consumers.

• Example 2: Industrial Supplies

  "ProTools Supply" specializes in industrial-grade safety equipment, such as hard hats, safety glasses, and specialized gloves. They acquire these items in bulk from several different safety equipment manufacturers. ProTools Supply then sells these products to construction companies, manufacturing plants, and mining operations, which are commercial users needing these supplies for their employees and operations.

  ProTools Supply acts as a distributor by sourcing products from manufacturers and supplying them to commercial users (construction companies, plants, mines) for their business needs, rather than selling individual items to workers directly.

• Example 3: Food and Beverage

  "Gourmet Goods LLC" purchases specialty cheeses, imported olive oils, and artisanal breads directly from various small-scale producers and international suppliers. Gourmet Goods LLC then distributes these products to high-end restaurants, catering companies, and gourmet grocery stores within a specific region.

  Gourmet Goods LLC is a distributor because it buys from producers and suppliers and then sells to other businesses (restaurants, caterers, grocery stores) that either use the products in their services or resell them to their own customers.