What is a distributorship?


What is a distributorship?

A distributorship is a company that supplies goods to stores or other businesses, or the right to supply goods to stores and businesses.

How do I become a distributor for my product?

If you’re selling branded items, go directly to the manufacturer of the product. They might sell to you depending on their minimum order requirements. If you’re too small for them or they only sell through established distribution channels, ask them for a list of reputable distributors you can contact.

How can I appoint a distributor in India?

Recommended criteria for choosing the Right Distributor:

  1. 1) Financially Strong.
  2. 2) Experience.
  3. 3) Infrastructure.
  4. 5) Awareness to Technology.
  5. 6) Positive attitude.
  6. 7) An eye for the future.
  7. Appointing Distributors in India.
  8. Laws and government agencies which regulate the relationship between a supplier and its distributor.

Who do distributors sell to?

Distribution businesses can buy from manufacturers and sell to retailers, or directly to consumers and/or businesses. Distributors also can provide logistical and storage support for manufacturers.

How can I become a FMCG distributor?

4 Steps To Start An FMCG Distributionship Business

  1. Decide your Product. FMCG is composed of various products.
  2. Business Plan. Business plan is the foundation of any successful business.
  3. Licensing & Registration. It is of utmost importance to get your business registered first.
  4. Location.

How much money do distributors make?

Distributor markup is generally 20%, but depending on the industry, the markup could be as low as 5% or as high as 40%. In the standard supply chain of manufacturer to distributor to retailer, one of the most consistent challenges is marking up prices so that companies return a profit while also staying competitive.