VENDOR

A vendor is a person or organization that sells goods or services to another party, including individuals, businesses, and institutions. Vendors can operate in physical markets, through retailers and wholesalers, or via online platforms. In procurement contexts, the term often denotes a seller under contract with a buyer, though it is sometimes used interchangeably with supplier.

In procurement and contract management, a vendor provides products or services under agreed terms and conditions. Relationships with vendors are managed through vendor management processes, which cover qualification and onboarding, performance evaluation, compliance, risk management, and contract administration. Vendors can be categorized by function (manufacturing, distribution, or service), by channel (retail, wholesale, or online), or by product category.

Types of vendors include street or market vendors who sell directly to consumers, wholesale vendors who supply retailers, software vendors delivering digital products or cloud services, and professional service vendors offering consulting, maintenance, or outsourcing. Vendors may also be involved in supply arrangements such as vendor-managed inventory, where the vendor monitors and replenishes stock at the buyer’s site.

Regulation and licensing for vendors vary by context. Street vendors often require local permits and licenses; online and retail vendors must comply with consumer protection, data privacy, taxation, and payment-processing rules. Contracts with vendors typically address pricing, delivery terms, quality standards, service levels, and dispute resolution.

The etymology of vendor traces to the Middle French vendeur, from Latin vendere, “to sell.”