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. Debit Note

    A document used by a purchaser to inform a vendor of the quantity ...
  2. Vendor Note

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

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

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

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

    1. For credit card vendors, a business's average ticket refers ...
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. Stock Analysis

    3 Things I Learned From The Container Store's 10K

    Since going public at the end of 2013, The Container Store's shares have fallen by roughly half their value. But not all is not lost.
  3. Home & Auto

    5. Online Loans

    Read about steps to take to get approved for a mortgage.
  4. 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 ...
  5. 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.
  6. Budgeting

    3. Bundle Services.

    The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!
  7. 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.
  8. The 5 Forces That Shape Competition In an Industry

    The threat of entrants, bargaining power of buyers and suppliers, threat of substitution and rivalry among competitors are Porter’s fives forces that shape a company's profitability. ...
  9. Budgeting

    Look For Deals or Coupons

    You can enjoy your holiday without breaking the bank.
  10. Budgeting

    12. Speak Up

    The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!
RELATED FAQS
  1. When would a vendor care about its accounts payable turnover ratio?

    Read about some of the reasons that vendors should pay attention to their accounts payable turnover ratio, and how it helps ... Read Answer >>
  2. How do companies like ClickBank help websites make money?

    Find out how sites such as ClickBank help websites make money by offering the opportunity for vendors and affiliates to promote ... Read Answer >>
  3. What are some factors that affect a company's days payable outstanding (DPO)?

    Discover what factors affect a company's days payable outstanding (DPO) and how a company and its vendors interpret the result ... Read Answer >>
  4. 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 >>
  5. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ... Read Answer >>
  6. What is the difference between a capital good and a consumer good?

    Learn to differentiate between capital goods and consumer goods, and see why capital goods require savings and investment ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center