Manufacturer vs Wholesaler: What are The Differences [2025]

If you’re running a retail business, here is the simple truth: a manufacturer makes the product, and a wholesaler sells it to you (retailer) in bulk.

Most of the retailers like you rely on wholesalers to stock up quickly. Only a small percentage go directly to manufacturers because of high order requirements.

In my opinion, you can consider a 65/35 ratio.

Around 65% of retailers buy their products from wholesalers, while the remaining 35% source directly from manufacturers, depending on their scale, budget, and branding goals.

In this guide, I will walk you through both manufacturer vs wholesaler clearly. You will understand how they work and how to choose the best one for your shop.

Let’s break it down:

👉 Manufacturers = product makers
👉 Wholesalers = product resellers
👉 Retailer = Product Seller

What are The Differences Between Manufacturer vs Wholesaler

Feature	Manufacturer	Wholesaler
Main Role	Produces products from raw materials	Buys finished products and resells them in bulk
Sells To	Wholesalers, large retailers, or brand owners	Retailers, small businesses, and sometimes consumers
Minimum Order Quantity (MOQ)	High (usually 500–1,000+ units)	Lower (as low as 10–100 units)
Pricing	Lower cost per unit (direct source)	Slightly higher prices due to middle margin
Customization Options	Yes – private labeling, packaging, material, etc.	Usually no customization; products are pre-made
Lead Time	Longer (2–8 weeks depending on production cycle)	Shorter (products are often in stock and ready to ship)
Brand Control	Full control over your own brand and product design	Limited control; you sell someone else’s product
Risk Level	Higher (bulk investment, longer wait, more complex logistics)	Lower (small quantities, less risk if product doesn’t sell)
Logistics	Requires shipping coordination, customs, and production tracking	Often local or faster shipping with simpler logistics
Best For	Building your own product line or brand	Quick restocks, testing new products, seasonal inventory
Example in Baby Business	You design custom baby onesies and order from a factory overseas	You buy trendy baby items from a domestic B2B wholesaler
Initial Investment Needed	High (bulk orders, custom production)	Lower (buy as needed)