What is a distributor?

A distributor plays a crucial role in the supply chain, acting as an intermediary between manufacturers and retailers or consumers. By acquiring products from manufacturers, distributors ensure that these products are delivered to the appropriate outlets, whether they are retail stores or end customers. This function is essential for maintaining the flow of goods from production to market, and distributors often handle important tasks such as inventory management, warehousing, and transportation.

In contrast, the other options represent different aspects of the market. For instance, a company that produces goods for wholesale focuses on manufacturing, rather than the distribution of products. An individual selling products directly to consumers describes a retailer or possibly a direct seller, which is distinct from the role a distributor fulfills. Lastly, a marketplace for bidding on goods refers to a platform and does not encompass the traditional definition of a distributor or their functions within a supply chain.