Vendor

AAA

DEFINITION of 'Vendor'

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".

INVESTOPEDIA EXPLAINS '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. Cheap Jack

    One who sells cheap and second-rate goods. Cheap jack is a slang ...
  2. Customer

    An individual or business that purchases the goods or services ...
  3. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  4. Vendor Note

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

    The lending of money by a company to one of its customers so ...
  6. Accounts Receivable - AR

    Money owed by customers (individuals or corporations) to another ...
RELATED FAQS
  1. What is the difference between JIT (just in time) and CMI (customer managed inventory)?

    Just-in-time (JIT) inventory management focuses solely on the need to replenish inventory only when it is required, reducing ... Read Full Answer >>
  2. When would a vendor care about its accounts payable turnover ratio?

    Vendors can act as suppliers or manufacturers, so they must pay attention to accounts payable and accounts receivable. An ... Read Full Answer >>
  3. What is an Original Equipment Manufacturer (OEM) in the automotive sector?

    OEM stands for Original Equipment Manufacturer. The OEM is the original producer of a vehicle's components, so OEM car parts ... Read Full Answer >>
  4. What are some common functions of business intelligence technologies?

    Although business intelligence technologies have some common functions, their main function is to support a company's decision-making ... Read Full Answer >>
  5. What is the average debt/equity ratio of companies in the wholesale sector?

    Standard debt-to-equity, or D/E, ratios among wholesalers fall between 0.8 and 1.1, although this range changes from year ... Read Full Answer >>
  6. Who are Whole Foods' (WFM) main competitors?

    Whole Foods' (WFM) main competitors are Sprouts (SFM) and Trader Joe's. However, Whole Foods strategy — convincing people ... Read Full Answer >>
Related Articles
  1. Insurance

    Working Capital Works

    A company's efficiency, financial strength and cash-flow health show in its management of working capital.
  2. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  3. Credit & Loans

    The History Of Consumer Credit Rights

    The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges.
  4. Savings

    Winning Retailers Amid Sales Slump

    Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.
  5. Savings

    Business Model Analysis: Costco Vs. Sam's Club

    Costco and Sam’s Club have very similar business models, but which one is faring better?
  6. Savings

    20 Ways To Pay Less At Costco

    There are plenty of little-known Costco shopping hacks that can save you big bucks at the register, and help you avoid the notorious spending hangover.
  7. Stock Analysis

    Costco, Target or Walmart: Which is the Best Bet?

    These three retailers have all been long-term winners. It that likely to continue? If so, which is the best bet?
  8. Stock Analysis

    Is There Any Upside Left in Costco?

    Costco's stock has performed exceptionally well over the past five years, but does it need a breather?
  9. Mutual Funds & ETFs

    Consumer Staples Defend against Volatility

    Volatility has crept back into the market, but consumers can defend against price swings by investing in consumer staples.
  10. Personal Finance

    How To Shop At Wholesale Retailers

    Have a plan and think twice before you venture through the sliding glass doors.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!