What is Vendor in Retail? Explained

A vendor is an entity, typically a manufacturer, wholesaler, or distributor, that supplies products or services to a retailer for resale. Vendors play a crucial role in the retail supply chain, providing the inventory and goods that retailers sell to their customers. The relationship between retailers and vendors involves various aspects, including negotiations on pricing, terms, and conditions. Effective collaboration with vendors is essential for retailers to ensure a consistent and reliable supply of products, maintain inventory levels, and offer a diverse assortment to meet customer demands.