Legal Definitions - distributor

Definition: A distributor is a company that sells products to retailers and commercial users. They buy products in bulk from manufacturers or suppliers and then sell them to smaller businesses or individuals.

Example 1: A company that sells office supplies buys pens, paper, and other items in large quantities from a distributor. The distributor then sells these products to smaller office supply stores or directly to businesses.

Example 2: A grocery store buys fresh produce from a distributor. The distributor sources the produce from farmers and then sells it to the grocery store at a lower price than if the store were to buy directly from the farmer.

These examples illustrate how a distributor acts as a middleman between manufacturers or suppliers and smaller businesses or individuals. Distributors help to streamline the supply chain by buying products in bulk and then selling them to smaller buyers, which can help to reduce costs for everyone involved.