Quick answer
Here isÌýaÌýlist ofÌýplaces where you can find excellent distributors forÌýyour products:
- Trade associations
- Trade shows
- Wholesale online directories
- °¿²ÔÌý³Ò´Ç´Ç²µ±ô±ð
- OnÌýsocial media
Continue reading toÌýlearn more.
You’ve created aÌýgreat new product ²¹²Ô»åÌýyou can’t wait toÌýget itÌýbefore customers. You’ve already started anÌýonline store ²¹²Ô»åÌýestablished aÌýpresence onÌýleading marketplaces. The next step isÌýtoÌýget theÌýproduct into asÌýmany retail stores asÌýpossible.
ToÌýdoÌýthis, you need theÌýhelp ofÌýaÌýdistributor. Distributors work with retailers ²¹²Ô»åÌýget your product into stores across theÌýcountry. The right partner can dramatically increase your sales ²¹²Ô»åÌýhelp you reach untapped market.
This article will help you find theÌýperfect distributors forÌýyour product.
What are Distributors?
Distributors, within theÌýrealm ofÌýbusiness ²¹²Ô»åÌýcommerce, serve asÌýintermediary entities that acquire products from manufacturers orÌýproducers toÌýsubsequently vend them toÌýother businesses, retailers, orÌýconsumers forÌýaÌýprofit.
This process typically entails theÌýtransportation ofÌýgoods from theÌýdistributor toÌýtheÌýfinal recipients. ByÌýeffectively overseeing theÌýmovement ²¹²Ô»åÌýsales ofÌýproducts, distributors play aÌýpivotal role inÌýtheÌýsupply chain, ultimately enhancing theÌýaccessibility ofÌýgoods forÌýconsumers.
Why Work With Distributors?
The first thing you need toÌýunderstand isÌýtheÌýrole distributors play inÌýretail ²¹²Ô»åÌýtheÌývalue they add.
AÌýdistributor isÌýessentially aÌýwholesaler that stocks aÌýlarge number ofÌýproducts ²¹²Ô»åÌýsells them toÌýretailers. Instead ofÌýdealing with each product manufacturer individually, aÌýretailer can negotiate aÌýsingle deal with theÌýdistributor ²¹²Ô»åÌýget access toÌýaÌýrange ofÌýproducts.
For retailers, theÌývalue isÌýclear. Dealing with aÌýdistributor saves them from theÌýburden ofÌýproduct selection ²¹²Ô»åÌýnegotiating with dozens ofÌýmanufacturers. InÌýmany cases, distributors will also take back unsold products, extend credit, ²¹²Ô»åÌýhelp retailers sell more.
For manufacturers ²¹²Ô»åÌýproduct creators such asÌýyourself, distributors offer easy access toÌýaÌýnetwork ofÌýretailers. Instead ofÌýapproaching hundreds ofÌýdifferent stores, you can negotiate aÌýdeal with aÌýsingle distributor. The distributor will then work toÌýget your product placed inÌýretail stores that buy from it.
Moreover, distributors take over theÌýresponsibility ofÌýstoring ²¹²Ô»åÌýshipping products from you. Instead ofÌýpackaging ²¹²Ô»åÌýshipping everything yourself, you can simply sell theÌýproduct toÌýtheÌýdistributor which, inÌýturn, will ship them toÌýretailers.
IfÌýyou care about reaching more customers ²¹²Ô»åÌýgetting access toÌýlucrative markets, you’ll want toÌýuse distributors. However, asÌýyou’ll learn below, you might not need distributors inÌýsome cases.
DoÌýYou Need Distributors?
Before you start your search, you need toÌýfigure out whether you even need distributors. This wouldn’t have been aÌýquestion inÌýtheÌý
Broadly speaking, there are aÌýfew different ways toÌýsell your products:
- Sell directly toÌýcustomers through your own store (physical orÌýonline)
- Sell directly toÌýcustomers through aÌýmarketplace such asÌýAmazon
- Sell toÌýretail stores (such asÌýWalMart) which then sell toÌýcustomers
- Sell toÌýdistributors who then sell toÌýretail stores.
The more intermediaries there are between you ²¹²Ô»åÌýtheÌýcustomer, theÌýlower your profit margin. You might make $5ÌýonÌýaÌý$10Ìýproduct ifÌýyou sell directly toÌýcustomers. AsÌýyou add more middlemenÌý— aÌýretailer, aÌýdistributorÌý— they’ll take their cut ²¹²Ô»åÌýeat into your profits.
ToÌýfigure out whether you need these middlemen orÌýwhether you can sell directly toÌýcustomers, you need toÌýconsider theÌýfollowing:
Your product category
Not every product does well online. For example, food ²¹²Ô»åÌýbeverages, aÌý, make upÌýaÌýsmall portion ofÌý
The distribution ofÌý
IfÌýyour product isÌýperishable, difficult toÌýtransport, needs toÌýbeÌýexperienced orÌýhas limited online demand, you’ll want toÌýsell via physical stores. And toÌýreach these stores, you’ll want toÌýuse aÌýdistributor.
Your target customers
The key toÌýsales isÌýtoÌýbeÌýwhere your customers are. IfÌýyour target customers don’t shop atÌýretail stores, you have noÌýreason toÌýpatronize them either.
Usually, ifÌýyour customers are older ²¹²Ô»åÌýless
Online demand
How strong isÌýtheÌýcurrent online demand forÌýyour product? AnÌýeasy way toÌýgauge this isÌýtoÌýcheck theÌýcompetition onÌýaÌýlarge retailer like Amazon. IfÌýyou have aÌýnumber ofÌýcompeting products, itÌýprobably means that there isÌýcustomer demand.
Another tactic isÌýtoÌýfind theÌýsearch volume forÌýyour product using aÌýtool like IfÌýaÌýlarge number ofÌýpeople search forÌýtheÌýproduct keyword, there isÌýaÌýgood chance some ofÌýthem will turn into buyers.
The monthly search volume forÌýthree different shoe related keywords
Manufacturing capabilities
When you sell directly toÌýcustomers, you can take products off theÌýmarket inÌýcase you run into anyÌýsupply issues. Distributors, however, will expect you toÌýhave enough volume toÌýmeet retailers’ demands.
IfÌýyou’re unsure ofÌýyour manufacturing capabilities, you might want toÌýstick toÌýyour owned channels initially.
Target retailers
Large retailers such asÌýWalMart, Costco orÌýTarget often ink deals directly with manufacturers.
IfÌýyour target market has mostly chain retailers, you can think ofÌýapproaching them directly. IfÌýitÌýisÌýmostly small stores, you’ll have toÌýgoÌýthrough aÌýdistributor.
Once you’ve figured out that you doÌýindeed need distributors, you can goÌýabout finding theÌýright one forÌýyour products.
Finding Distributors forÌýYour Product
The distributor isn’t just aÌýcompany you sell your products to. ItÌýisÌýaÌýpartner inÌýyour business’ growth. Picking theÌýright distributor isÌýcrucial forÌý
There are aÌýnumber ofÌýways you can find distributors forÌýyour product:
Trade associations
Most industries have local trade associations where manufacturers, retailers, ²¹²Ô»åÌýdistributors can come together. This should beÌýtheÌýfirst stop onÌýyour journey toÌýfind aÌýdistributing partner.
InÌýtheÌýUS, theÌý (NAW) offers aÌýlist ofÌýregional ²¹²Ô»åÌýlocal chapters ofÌýdifferent trade associations. Use this toÌýfind distributors that serve your industry ²¹²Ô»åÌýregion.
has another list ofÌýtrade associations forÌýdifferent industries. Find anÌýassociation that serves your industry ²¹²Ô»åÌýbecome aÌýmember.
Once you join aÌýtrade association, try toÌýfind how other manufacturers sell their products. What distributors doÌýthey use? What markets doÌýthey target? What kind ofÌýresults doÌýthey get from their efforts?
InÌýmost industries, there will beÌýbest practices, proven players, ²¹²Ô»åÌýestablished channels. Adopting these best practices isÌýrecommended forÌýanyÌýnew entrant.
Trade shows
Another way toÌýfind distributing partners isÌýtoÌýattend trade shows that target your industry. AÌýlarge trade show can bring together hundreds ofÌýdistributors ²¹²Ô»åÌýmanufacturers under theÌýsame roof. Attending one can give you aÌýquick idea ofÌýtheÌýdistribution landscape, available options, ²¹²Ô»åÌýindustry best practices.
has aÌýtrade show calendar covering major shows inÌýdifferent industries.
Use theÌýtrade show calendar toÌýfind shows that cover your industry
ExpoDatabase has aÌýmore comprehensive list ofÌýtrade shows, though many ofÌýthese are smaller shows targeting local markets.
AsÌýwith trade organizations, try toÌýinteract with other businesses inÌýtheÌýindustry (preferably nondirect competitors). Figure out who theÌýtop distributors are, what are their requirements, ²¹²Ô»åÌýwhat kind ofÌýresults they get. Try toÌýget aÌýreferral orÌýanÌýintroduction. Good word ofÌýmouth matters aÌýlot inÌýthis decision.
Wholesale directories
AÌýwholesaler isÌýessentially theÌý
has aÌýgood list ofÌýwholesalers across different verticals.
Search onÌýWholesaleCentral toÌýfind wholesale distributors covering your product category
Google search
When theÌýabove approaches fail, you can fall back onÌýgood “ol Google.
Search forÌýkeywords like theÌýfollowing:
[Product Category] distributors
[Product Category] distributors inÌý[local market]
You’ll usually find wholesalers ²¹²Ô»åÌýdistributors covering your industry atÌýtheÌýtop ofÌýtheÌýsearch results. Get inÌýtouch with them ²¹²Ô»åÌýask about their requirements, terms, ²¹²Ô»åÌýresults.
Social networks
Lastly, you can always turn toÌýsocial mediaÌý— Facebook, LinkedIn, blogs, forums, etc.Ìý— toÌýfind distributors. Find groups onÌýFacebook, LinkedIn orÌýforums that cover your industry. Ask how other product creators found distributors ²¹²Ô»åÌýwhat were their results like.
How toÌýEvaluate Distributors
Simply getting aÌýlist ofÌýdistributors isn’t enough; you also have toÌýmake sure that they’re theÌýright fit forÌýyour business.
Start byÌýcreating aÌýlist ofÌýyour own requirements. Understand deeply what kind ofÌýbusiness you want toÌýrun, your capabilities, ²¹²Ô»åÌýgoalsÌý— both
Once you’ve figured this out, develop anÌý‘idealÂ’ distributor profile based onÌýthese requirements. This should beÌýbased on:
- Distributor size: You want toÌýwork with aÌýdistributor that can accommodate your business without ignoring it. IfÌýtheÌýdistributor isÌýextremely large, you might not get theÌýattention your business needs.
- Distributor expertise: AÌý
general-purpose distributor might work well forÌýgeneric products. IfÌýyour product requires niche knowledge toÌýsell, however, you’ll want aÌýdistributor with proven expertise. For example, ifÌýyou’re selling aÌýrevolutionary new bike, you’ll want distributors who understand theÌýbusiness ²¹²Ô»åÌýtechnical aspects ofÌýbikes thoroughly. - Business goals ²¹²Ô»åÌývalues: Pick aÌýdistributor that aligns with your goals ²¹²Ô»åÌývalues. IfÌýyou want toÌýwork with small stores ²¹²Ô»åÌýfocus onÌýsustainable growth, pick aÌýdistributor that prioritizes these goals. IfÌýyou want toÌýget into
big-box retailers ²¹²Ô»åÌýunlock exponential profits, pick accordingly.
Search forÌýtheÌýdistributor onÌýsites such asÌýBBB.org ²¹²Ô»åÌýGoogle toÌýsee what others think about them
Once you’ve figured out your requirements, start evaluating distributors onÌýtheÌýfollowing factors:
- Business stability: How stable are theÌýdistributor’s finances ²¹²Ô»åÌýoperations? Does itÌýhave aÌýhistory ofÌý
on-time payments? How long has itÌýbeen inÌýbusiness? - Sales competence: AÌýgood distributor will have aÌýstrong sales force. Evaluate them onÌýtheÌýsize ofÌýtheir sales team (both inside ²¹²Ô»åÌýoutside sales), how they generate leads, ²¹²Ô»åÌýoverall sales vs. sales team size.
- Marketing capabilities: Ask how theÌýdistributor markets its business toÌýprospective retailers. What channels does itÌýuse? Does itÌýdoÌýanyÌýonline marketing? IfÌýyes, evaluate itÌýforÌýquality, competence, ²¹²Ô»åÌýresults.
- Market knowledge: How well does theÌýdistributor know theÌýlocal market? Does itÌýknow all theÌýmajor retailers inÌýtheÌýmarket ²¹²Ô»åÌýtheÌýkind ofÌýproducts they carry? AÌýgood distributor would have
inside-out knowledge ofÌýtheÌýlocal market conditions. - Inventory management &Ìýlogistics: How does theÌýdistributor handle inventory? How large are its warehouses? Does itÌýhave its own fleet forÌýshipping? IfÌýyes, what isÌýtheÌýfleet size? What other logistics partners does itÌýuse?
- Management: What kind ofÌýpersonnel does theÌýdistributor have? Does itÌýhave professional managers ²¹²Ô»åÌýmanagerial practices inÌýplace? What isÌýtheÌýfounder(s)” background ²¹²Ô»åÌýexperience?
- Fit: Does theÌýdistributor align with your expectations? Does itÌýfit into your ideal distributor profile? Evaluate theÌýdistributor onÌýthis all important factorÌý— overall fit.
Doing this exercise will help you find distributors who can benefit your business inÌýtheÌý
The only thing you have toÌýdoÌýisÌýtoÌýconvince them toÌýwork with you.
How toÌýGet Distributors toÌýWork With You
While you evaluate distributors forÌýfit ²¹²Ô»åÌýcompetence, distributors will also assess your business. Effective distributors don’t want toÌýwork with just anyÌýsupplier. They want toÌýpartner with businesses with proven product demand, sales, ²¹²Ô»åÌýeffectiveness.
There are aÌýfew things you can doÌýtoÌýconvince distributors toÌýwork with you:
- Demonstrate knowledge: Show that you understand your own market asÌýwell asÌýtheÌýdistributor’s goals. Develop your pitch along theÌýdistributor’s business goals ²¹²Ô»åÌýmarket approach.
- Show customer demand: Demonstrate that there isÌýactual customer demand forÌýyour product. The best way toÌýdoÌýthis isÌýtoÌýshow sales figures from your own online store. IfÌýnot, use data from existing retailers ²¹²Ô»åÌýmarketplaces.
- Develop aÌýbrand: Distributors want toÌýwork with businesses that take themselves ²¹²Ô»åÌýtheir brand seriously. AÌýstrong br²¹²Ô»åÌý— inÌýdesign, copy, presence, ²¹²Ô»åÌýcustomer experienceÌý— will leave asÌýbig anÌýimpression onÌýdistributors asÌýitÌýdoes onÌýyour customers.
- Show intent: Distributors don’t want toÌýwork with aÌý“hobbyists” who might leave theÌýbusiness ifÌýtheÌýgoing gets rough. Prove that you’re ready forÌýtheÌý
long-haul byÌýdemonstrating your investment (in time ²¹²Ô»åÌýmoney) into theÌýbusiness. - Get referrals: IfÌýyou can get aÌýreferral orÌýanÌýintroduction from someone theÌýdistributor trustÌý— such asÌýanÌýexisting partnerÌý— itÌýwill become much easier toÌýstrike aÌýdeal.
Think ofÌýthis asÌýdating where both parties evaluate each other forÌýtheÌýright fit. Once you find someone who wants toÌýwork with asÌýmuch asÌýyou want toÌýwork with them, you know you’ve found theÌýright distributing partner.
While you continue your search forÌýtheÌýright distributor, don’t forget toÌýcreate anÌýonline store ²¹²Ô»åÌýstart making sales. Even ifÌýyou don’t prioritize online channels, proof ofÌýsales ²¹²Ô»åÌýcustomer demand will make itÌýmuch easier toÌýget picked upÌýbyÌýaÌýtop distributor.
Ìý
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