Why Do Manufacturers Choose Vendors Over Resellers or Vice Versa?

 In the tool supply chain, manufacturers must decide how their products reach end users—through vendors, resellers, or both. Each path has trade-offs related to control, reach, and cost.

A vendor is often part of a formalized supply agreement. They may handle storage, shipping, and even limited marketing. This is efficient for large manufacturers who want centralized logistics and consistent pricing across regions. Vendors typically cater to bulk buyers—distributors, wholesalers, or government tenders.

On the other hand, a reseller buys and sells tools for profit, often adding their own branding or marketing. They bring flexibility. Resellers specialize in targeting niches—electricians, auto garages, DIYers—and often understand their customers better than the brand itself.

Manufacturers choose vendors when they want scale and stability. They choose resellers when they want reach and adaptability.

Many successful brands use a hybrid approach—exclusive vendors for large accounts and open resellers for market penetration. The choice depends on business goals. Is the focus on brand control or mass availability? Both have value. The key is balance.