What is a Vendor?

A vendor is a purveyor of goods or services. All of the entities in a supply chain that leads up to the final delivery of goods or services to a customer are considered vendors. They typically operate under contracts with their customers, which state the terms of service, pricing, payment terms, and delivery schedules under which deliveries will be made and services provided.

A vendor may be classified as selling business-to-business (B2B), or as business-to-consumers (B2C), or as business-to-government (B2G), depending on the type of goods or services that it offers.