Starting and running a business successfully is not an easy task, and even harder is to sustain it. The success of the business depends on several aspects like branding, company structure, sales, product suppliers and marketing strategies.
A company is a commercial business formed by a group of people. They may own the company in a partnership, proprietorship, or corporation. A vendor, on the other hand, is a company or person who offers products or services for sale. They can be considered as traders or sellers.
Vendor Name vs Company Name
The main difference between company name and vendor name is that the company name is what a particular business is legally recognized by, while the vendor name is the name of the company that provides the products to be sold. The company acts as a platform for the resale of products provided by the vendor.
For example, Cloudtail India is a vendor that sells various items like books, make-up and other products on Amazon. Here Cloudtail India is the vendor while Amazon is the company. The company name is more prestigious and trusted in the market than the vendor’s.
Comparison Table Between Vendor Name and Company Name
| Parameters of Comparison | Vendor Name | Company Name |
| Definition | The name of an individual or a company that offers the products for sale to the company. | The legally recognized name of a business which resales products by various different sellers (vendors) or someone who makes the products. |
| Legal Details | They do not have many legal liabilities. | They have many legal liabilities as they are the face of the business. They own property, can be sued and can sue others too. |
| Brand | It is not recognized as a brand or a trademark. | It is recognized as a brand or a trademark. |
| Plans | They have no specific plans in mind and can make swift decisions regarding their business. | They have specific plans regarding the company and need those to be approved by three-quarter of votes. |
| Role in Business | They act as the distributor for a particular product. They resale products. | They act as the maker of products or as a company that resales all kinds of products on a platform. |
What is a Vendor Name?
A vendor is someone who sells their products through other companies. The name of that individual or business is called a vendor name. They act as suppliers of certain products or services to other companies. Their name can either be a registered business name or a vendor’s name.
Vendors aren’t liable for much legally and can hence make changes in their strategies very fast. They can change their name and even start selling different products. They can sell the products to other businesses, consumers or even the government.
They act as a warehouse that supplies the market. The products or services can be sold either online or offline. A farmer’s stall that sells vegetables can be considered as a vendor. They come first in the line of the market chain.
What is a Company Name?
A company name is the name of a legally recognized business that works in reselling of products and services or making them. The company name is a legal proof. It can be seen on a registration certificate that shows the date of registration, company’s name and address.
A company is owned by several people who take decisions for it together, vote on it and if it passes the margin of three quarter of votes, it can be carried out. A company name is well known in the market and its identity is distinct. A company may be considered as a middle-man in the market chain.
We know several companies like YouTube, Amazon, Flipkart, Netflix, etc. They all sell different services and products from different vendors from all around the world. Streaming services provide music and entertainment from all around the world, and online shopping platforms provide different items sold by several vendors.
Main Differences Between Vendor Name and Company Name
- A vendor name is the name of a retailer or a supplier of products and services. A company name is the name of the business that makes or resales the products by different vendors/sellers.
- A vendor name holds less legal liabilities than a company name.
- A company name is recognized as a brand or a trademark, while a vendor name is not.
- A vendor does not necessarily have any resolution in their strategy while a company has long term plans that have to be put to vote.
- While vendors only sell products, a company can either resell products or even make them.
- A vendor does not make his own products, while a company may or may not make their own products.
Conclusion
Both the vendor and the company are a part of the supply chain in the market. Their names are the identities with which they are recognized in the market. They both are different levels/positions in the business market.
The vendor and company have many differences that set them apart from each other. But if you’re new to the world of business, it can be quite easy to confuse them with each other. But the main difference to keep in mind is that a vendor is a retailer of products and services, and a company is the one that makes or resales the products and services from the vendors.
For example, Netflix is a company that curates films and series from all around the world from different studios and production houses. Here, Netflix is the company name and the production house, studios and distributors are vendors.
This makes it quite clear that the company name is at stake when a product or a service turns out to be faulty and not the vendor name. People will always turn to the big brands and trademarks for their questions and not mere vendors.
References
- https://www.sciencedirect.com/science/article/pii/0377221793903013
- https://www.diva-portal.org/smash/record.jsf?pid=diva2:835509