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vendor vs supplier

What's the difference between vendor and supplier? Here's the clear answer, with examples of each.

Quick answer

A vendor is a person or company that sells goods or services, such as a street food vendor or a software vendor. A supplier is a person or company that provides goods or materials, often to a business rather than the public. A market vendor sells food to shoppers; a supplier provides the cotton a factory turns into cloth.

The core difference

A vendor sells, often to the end buyer, while a supplier provides goods or materials, typically further up the chain.

  • vendor — a person or company that sells goods or services: the street was lined with food vendors selling tacos and fresh juice.
  • vendor — also a machine that sells items automatically: there's a snack vendor on the second floor of the office.
  • supplier — a person or company that provides goods or materials: the factory switched suppliers after repeated late deliveries.

How to tell them apart

Both words describe businesses on the selling side of a deal, which is why they get used almost interchangeably in casual talk. Vendor tends to suit a sale closer to the end buyer, whether that is a market stall, a snack machine or a software company selling licences. Supplier tends to suit an earlier stage, providing raw materials or components that a business then uses or resells, such as a supplier of raw cotton.

The overlap shows up most in business software, where the same company switching software vendors elsewhere gets called a supplier. Either word usually works for a business relationship, but vendor fits selling to a buyer, while supplier fits providing what a business needs to operate.

Frequently asked questions

Can the same company be both a vendor and a supplier?
Yes, depending on who it is selling to. A company selling raw materials to a factory is a supplier to that factory, while a company selling finished software licences to users is a vendor.
Does vendor always mean a person or company?
No, vendor can also mean a machine, such as a vending machine, that sells items automatically.
Where does the word vendor come from?
It was borrowed from Anglo-Norman vendor, going back to the Latin venditor, meaning seller, from vendere, to sell.