What is Distributor?

    DISTRIBUTOR

    A distributor is a two-tier channel partner that buys product from the vendor in bulk and resells it to a network of VARs, MSPs, and resellers.

    DEFINITION

    A distributor sits between the vendor and the reseller in a two-tier channel model. They warehouse product, extend credit to resellers, handle logistics, and provide technical enablement to the resellers they serve.

    HOW IT WORKS

    The vendor sells to the distributor at a distributor price. The distributor holds inventory, resells to resellers at a reseller price, and manages the operational overhead of dozens or hundreds of downstream partners.

    WHY IT MATTERS

    Distributors let vendors reach a long tail of resellers they could never onboard directly, and offload the operational burden of credit, logistics, and enablement.

    FAQ

    QUESTIONS, ANSWERED.

    What is two-tier distribution?

    A model where the vendor sells to a distributor, and the distributor sells to a reseller, who sells to the end customer.

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