Learn how to start and manage a wholesale distribution business
Distribution is the most important type of wholesale business. Why? Because almost every product you see in a supermarket, clothing store, pharmacy, specialty store or any other retailer got to that store through distribution. Even non-retail items—building supplies, paper, packing equipment, auto parts—are to be delivered to other business via distribution.
Entering the distribution business requires consideration of many factors. The two most important things to consider are your wholesale products and your sales channels. Your sales channels dictate how to start, manage, and make money with your new venture. In order to start your new distribution business, you need to consider many important questions: who is your customer, what product you are selling, how will you deliver the product, and how much will you charge for your services.
Finding products for distribution
When starting a distribution business, you need to find products to distribute. Give a lot of attention into your wholesale products; you want to distribute products that will be successful so you can make money and the manufacturer can reap large profits. If you have the connections, go for bestselling products. Remember that you are a reseller, not a brand maker; don’t try to launch no-name brands because it is difficult to make them work. Major name brands are always much more competitive and harder to get. Many times you have to compete on price to beat your competition. In other words, if you don’t have an outstanding source for iPods it will be hard to compete selling them!
To find the best wholesale products available, this supplier list is highly recommended.
Maximizing distribution channels
Distribution channels are all the types of customers you have, plus the ways you can sell your products to those customers.
So how will you find new customers to sell your product?
Your distribution and sales channels can include selling to stores such as:
-Convenience Stores or C-Stores
-Department Stores like Clothing Retailers
-Wholesalers and Distributors
-Restaurants or Hotels
-Other Retail Stores
Begin developing relationships with buyers and regional managers of retail companies. You need their cooperation to get your wholesale product onto store shelves. To start, you will need to pick up the phone and begin calling buyers and managers to pitch your product to them.
Always look for the best products and different ways of selling and delivering you products to consumers. Think outside the box.
When you are selling products through different distributor or retail channels you have to know your customers and how they sell and what they sell. While you want to be able to provide as many products to many customers as you can—you can’t sell everything. By learning about the various kinds of wholesale distributors that there are, you can find out where you may be able to step into the business.
For more information on how distributors work, types of distributors, and ways you can get into the distribution business, check out this article.
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