What is the difference between distributor and agent?

What's the difference between distributor and agent?

Difference between Distributor and Agent / Stock photo

Difference between distributor and agent

When people discuss export sales, they often have to think about what type of legal entity to have abroad. Should you have an office, a distributor or a sales agent?

But what is the difference between distributor and agent?

The Distributor

A distributor sells a supplier’s products to their customers. The distributor assumes liability for the products so it can be a very high risk for them. Moreover, the contract of the sale is only between the customer and the distributor. The distributor isn’t permitted to create a contract between the supplier and customer. Therefore, any deal a distributor makes with a customer is short-lived.

The Agent

A sales agent is employed by a company with the task to negotiate and sell goods on their behalf. An agent acts as a medium between a supplier and a distributor and has the authority to sell products in the name of the supplier. They tend to create contracts directly for the supplier with whom they work.

In a nutshell, an agent is a person who acts on behalf of another person, group or organization.

The STAR Team

Source: Oxford English Dictionary

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