Difference between Vendor and Seller

Key difference: The recipients of the products differ in the case of a vendor and a seller. A vendor sells the product to any consumer or end-user, while a seller sells the products to any buyer.

Vendors are the sellers, who sell the products to end-users. They are at the final stage of any trade and business management system. They are defined as ‘someone who promotes or exchange the goods or services for money’.

Vendors are local sellers of any commodity, products, goods and services. They are known to sell these goods at the affordable and convenient rates. They are not employed, either full-time or part-time, by the guarantee, hence are considered as hired services. When vendors return back the leftover products, they clear their account as they are paid for products which they sell. Their commission or profit percentage are fixed before, which they receive after sale. Vendors are not subject to any compliance requirements, hence they work in a competitive environment. They are providers of commodities, hence their main motive is to sell and supply.

The word ‘seller’ explains its meaning on its own, that is, one who sells. They sell their products to any purchaser, who would be willing to buy the products. They are defined as a ‘party that makes offers or contracts to make a sale to an actual or potential buyer’.  

Sellers are solely involved in the process of selling. They are only concerned with the buyers and can sell the products to any one, who would comprise any role in the trade cycle. The main and basic function of any seller is to sell the products, as per their plan and mould their selling strategies.

Comparison between Vendor and Seller:





A vendor is any individual or firm hired to provide a specific service or product (product purchase or fee-for-service) within the normal business operations.

A seller is a person who sells something.

Derived from the words

They are derived from the word “vendor", which is originally a Latin word.

They are derived from the word “sell” which is derived from Germanic languages.

Sell products to

They sell the products to the consumers or the end-users.

They sell the products to any one who can buy them.

Products sold of what quality

They sell the products with some value added maintenance.

They sell the products without any value addition.


Vendors are fixed, that is they are known in the markets.

Anyone can become a seller on the usual basis, as per their needs.

Commonly known

Vendor” is normally used to refer to people who sells things on the street.

Seller” usually sells things in a shop.

Factors they consider

They imply expenses.

They are usually associated with Revenue


An ice cream vendor.

A salesman.

Image Courtesy: mentorprotege.gmu.edu, prudentialcoloradoproperties.com

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