Direct from the manufacturer gives better margin, better product knowledge and slower range-building. A distributor gives one invoice across many brands, easier logistics and a thinner margin. Most established stores end up running both, deliberately.
Buyers usually fall into one model by accident — whoever turned up at the trade show first — and then stay there.
Worth being deliberate about, because the two behave very differently when something goes wrong.
The two models
Direct from the manufacturer. You buy from the business that makes the product. One brand, one relationship, one invoice per brand.
Through a distributor. You buy from a business that holds many brands. One relationship, one invoice, many brands, and they sit between you and every manufacturer.
There's a third — buying from a wholesaler who is really a reseller — which behaves like distribution but with less commitment to any brand.
Where each one wins
| Direct | Distributor | |
|---|---|---|
| Margin | Better | Thinner — they take a cut |
| Range breadth | One brand at a time | Many brands, one order |
| MOQs | Per brand, adds up | One combined minimum |
| Product knowledge | Deep — you're talking to the maker | Broad but shallow |
| Lead time on reorder | Depends on production | Usually stock on hand |
| Continuity if something breaks | They can actually fix it | They can only ask |
| Admin | One account per brand | One account total |
| Exclusivity | Negotiable with the maker | Rarely available |
The case for going direct
Margin is the obvious one, but it's not the strongest.
The strongest is that the manufacturer can actually change things. Need a different pack size, a display unit, a variant that suits your customers, or stock urgently before a long weekend — a manufacturer can decide. A distributor can only forward your email.
You also get product knowledge that survives contact with a customer question, and a relationship with someone whose business depends on your reorder rather than on their catalogue average.
The case for a distributor
Admin, and cash flow.
Ten brands direct is ten accounts, ten MOQs, ten sets of terms, ten invoices and ten deliveries. The same ten through a distributor is one of each. For a small team that difference is real, and it's usually underweighted by people arguing for margin.
Distributors also carry stock. When you need something Thursday, a distributor with a warehouse beats a manufacturer with a production schedule.
And for testing, a distributor lets you take small quantities of many things and see what moves, without committing to a full opening order per brand.
The hybrid, which is what most good stores actually do
The pattern that works:
- Direct for your core lines. The products that define your range and that you reorder constantly. Best margin on your highest volume, and a real relationship on the products that matter.
- Distributor for the long tail. The breadth, the seasonal, the things you're testing, the one-off gaps.
That way the admin burden sits on the products where it earns something, and the convenience sits where the margin wouldn't have justified the effort anyway.
Questions that decide it for a given brand
- How often will I reorder this? Frequent reorders justify a direct account.
- How much of my range is it? A core line direct, a curiosity through a distributor.
- Do I need to talk to someone who can change things? If yes, direct.
- Can I hit the MOQ without overbuying? If not, distribution until you can.
- Does the manufacturer even sell direct? Plenty appoint an exclusive distributor and that's the end of the conversation.
One thing to check either way
Where else is this product sold, and at what price? A brand that sells direct to consumers at your retail price, or lets a distributor supply a marketplace seller, has created a problem for you regardless of which model you buy through.
Ask it early. It's the question most likely to affect your margin after you've committed.
OGA supplies both ways — direct wholesale accounts for retailers, and through distributors nationally and internationally. The wholesale pack covers both, including minimums and RRP policy.
Frequently asked
What is the difference between a wholesaler and a distributor? A distributor holds and represents brands, usually with some commitment to them, and sells on to retailers. A wholesaler in the looser sense simply buys and resells. Buying direct means buying from the manufacturer itself.
Is it always better to buy direct? No. Direct gives better margin and a real relationship, but ten direct accounts means ten MOQs, ten sets of terms and ten deliveries. For long-tail and test lines a distributor is usually the better commercial decision.
Can I do both? Yes, and most established stores do — direct for the core lines they reorder constantly, distribution for breadth and testing.
Why won't some manufacturers sell direct? Many appoint exclusive distributors for a territory, or set a MOQ that only makes sense above a certain size. Ask early rather than assuming.
What should I check regardless of model? Where else the product is sold and at what price. A brand undercutting you direct-to-consumer, or turning up on a marketplace below your cost, erodes the margin either model promised.
OGA supplies both direct wholesale accounts and distributors, in Australia and internationally. For the catalogue, minimums and RRP policy, make an enquiry.
