Vendor

What is a 'Vendor'

A vendor is the party in the supply chain that makes goods and services available to companies or consumers. The term vendor is typically used to describe the entity that is paid for the goods that are provided, rather than the manufacturer of the goods. A vendor, however, can operate both as the supplier of goods (seller) and the manufacturer.



Also known as a "supplier".

BREAKING DOWN 'Vendor'

A vendor is a person or a business entity that sells something. Large retail stores generally have a list of vendors from which they purchase goods (at wholesale) to sell (at retail) to their customers. Vendors can also sell directly to the customer, as seen with street vendors. In addition, a vendor can provide parts for another business that will be used to make an end product.




RELATED TERMS
  1. Vendor Note

    A type of debt instrument used in a particular type of short-term ...
  2. Vendor Financing

    The lending of money by a company to one of its customers so ...
  3. Delayed Disbursement

    A cash management technique that involves a company paying vendors ...
  4. Licensing Revenue

    Income earned by a company for allowing its copyrighted or patented ...
  5. Average Ticket

    1. For credit card vendors, a business's average ticket refers ...
  6. Supply Chain

    The network created amongst different companies producing, handling ...
Related Articles
  1. Entrepreneurship

    New Year Planning For Business Owners

    Make a resolution to start your business off on the right foot in the new year.
  2. Personal Finance

    7 Tips For Shopping Online Safely This Holiday Season

    Christmas shopping: long lines, crowded parking lots - wouldn't you prefer to shop on the internet? Here are seven tips for shopping online safely this holiday season.
  3. Investing

    Days Payable Outstanding

    Days Payable Outstanding, or DPO, is an accounting measurement that tells the average number of days it takes a company to pay its suppliers and vendors. Days Payable Outstanding is widely used ...
  4. Investing

    Accounts Payable

    Accounts payable is the amount of a company's total invoices currently waiting to be paid. These invoices are from vendors for products and services that were recently delivered.
  5. Investing News

    Target Tells Suppliers To Move Faster Or Pay-Up (TGT)

    Target has begun cracking down on its vendors in an attempt to increase its supply chain efficiency, says a report.
  6. Budgeting

    Four Online Shopping Alternatives To Amazon

    There are several alternatives when it comes to online shopping. The more you know about the reputation of the vendor and the quality of the product, the better your purchase experience will ...
  7. Stock Analysis

    Best Buy Betting On House Brands

    Best Buy uses its house brands strategically, but is this hurting the company or helping it to stay on top?
  8. Forex Fundamentals

    Top 5 US Cities That Accept Bitcoin

    Discover why bitcoins are a popular form of payment among many consumers, and learn the top five cities in the United States that accept this currency.
  9. Options & Futures

    Shopping Online: Convenience, Bargains And A Few Scams

    Shopping from the comfort of your couch has major benefits - and some unpleasant side effects.
  10. Investing

    Under Armour Stock: Analyzing 5 Key Customers (UA)

    Learn about a handful of important sporting goods retailers purchasing and selling Under Armour products in the United States and European markets.
RELATED FAQS
  1. What is industry etiquette for number of days payable outstanding (DPO)?

    Read about what constitutes an allowable threshold for days payable outstanding, and why creditors and debtors often have ... Read Answer >>
  2. Can working capital be negative?

    Learn under what circumstances negative working capital can arise and what it means when working capital stays negative for ... Read Answer >>
  3. Why is a bank guarantee important in a long-term project contract?

    Understand what a bank guarantee is and learn why it is so important to the risk and safety of a long-term project contract Read Answer >>
  4. What other sectors are most similar to banking?

    Learn valuable information about the many different subsectors in the financial services sector that most closely resemble ... Read Answer >>
  5. Why is time an important factor when evaluating supply?

    Learn how suppliers respond to increases in demand and why time is an important factor in supply and demand. Find out how ... Read Answer >>
  6. What's the difference between a bank guarantee and a letter of credit?

    A bank guarantee and a letter of credit are similar in many ways but they're two different things. Letters of credit ensure ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center