How To Get Distribution for a Product?

Every day someone creates a new product, but there is a good chance that these products will end up being obsolete because the manufacturer does not distribute the product in a timely manner. In this article, we will describe what distribution is, how to find distributors and strategies for distributing products.

What Is Product Distribution?

Distribution is the process of delivering products and services from the manufacturer to the customer, which can also be referred to as product distribution. As companies grow, it becomes more important to improve distribution to ensure that everyone in the product distribution channel is satisfied. It spreads through the marketplace and products are bought more often. The product distribution process includes packaging, shipping, and delivery.

The Four Types of Distribution

There are four types of distribution that manufacturers can use to sell their products, and you need to decide which type of distribution you choose based on the type of product you are selling.

Direct

Direct distributors sell their products directly to stores, without going through distributors. The advantage of direct distribution is that they can sell products faster than other types of distributors. This allows direct distributors and retailers to build a good relationship, and direct distributors provide sufficient inventory to meet the needs of retailer customers for their products.

Intensive

Intensive distribution is a marketing strategy in which an intensive distributor works with many retailers, which usually means selling products in as many stores as possible. Companies that use intensive distribution usually sell their products in small local stores and large national chains. This helps increase the chances of customers finding the product and increases sales. Beverages and cigarettes are some examples of intensive distribution.

Selective

Unlike intensive distribution, selective distributors sell to specific retailers that fit the manufacturer’s target market or brand. One benefit of selective distribution is that manufacturers can have greater control over their customer base and use that control to adjust prices. Selective distribution of products for niche markets is a popular choice.

Exclusive

An exclusive distributor is the sole distributor of a manufacturer’s product. There is an exclusive distribution agreement between the manufacturer and the distributor, and the manufacturer is not allowed to sell the product to other distributors unless it is an exclusively authorized distributor. Likewise, a distributor who is granted exclusive distribution rights for the manufacturer’s products is not allowed to distribute or sell the products of the manufacturer’s competitors. One benefit of exclusive distribution is that it allows the manufacturer to have more control over the brand and image.

3 Types of Distribution Channels

There are three ways to make sure a product gets to the final consumer.

Direct Channel

With the direct channel, the goods do not go through intermediaries and the company is responsible for delivering the product directly to the consumer. In this model, the manufacturer has full control over the distribution channel.

Indirect Channel

Through the indirect channel, the manufacturer sends the product to intermediaries through whom it is delivered to the consumer. Who are these intermediaries? They can be wholesalers, retailers, distributors, or brokers. In this case, the manufacturer does not have complete control over the distribution channel. Through intermediaries, you can promote the sales volume of your products, but you need to pay a certain commission to the intermediaries.

Mixed Channel

A hybrid channel is a mixture of direct and indirect channels, in which the manufacturer has a partnership with an intermediary, but still has control when it comes to contact with customers.

How To Find Distributors?

Distributors are a partner in the growth of your business, and picking the right one is critical to long-term success.

Here are a few ways to help you succeed in finding distributors

Trade Associations

Joining a local trade association should be your first stop in finding distribution partners. Local industry trade associations bring manufacturers, retailers, and distributors together.

When you join a trade association, try to find out how other manufacturers sell their products, what distributors they use, and what their target markets are.

Trade Shows

Another way to find distribution partners is to attend a trade show in your industry. A large trade show brings together hundreds of product distributors and manufacturers under one roof, and attending a trade show can give you a quicker view of the distribution field.

AbsoluteExhibits has a calendar of trade shows covering different industries

ExpoDatabase has a more comprehensive list of trade shows for smaller shows in your local market.

Wholesale Directories

WholesaleCentral.com has a good list of wholesalers in different verticals, so you can find wholesalers that match your business.

Google Search

Google search can provide you with unexpected surprises

Search for keywords similar to the following

distributors

Distributors in

for [local market]

You can usually find wholesalers and distributors covering your industry at the top of the search results, get in touch with them and ask for their requirements.

Social Media

Finally, you can always turn to social media – Facebook, LinkedIn, blogs, forums, etc. – to find distributors. Find groups covering your industry on Facebook, LinkedIn, or forums and ask how to find distributors.

What Are the Strategies for Distributing a Product?

Understand the Distribution Channels of the Industry

Research shows that a product can get to a retailer in multiple ways. Not all wholesalers serve the same market. Understanding the distribution channels in your industry can help you find the right wholesale supplier for your retail or online business.

Select the Type of Distribution

You need to understand that many products can be delivered through multiple channels. Don’t put your eggs in the same basket and don’t choose just one channel that is extremely risky. Even if you find a partner, you may not be able to control their performance later. Determine your criteria and needs first before you contact the company.

Evaluate Manufacturers

If you are selling branded items, you may want to go directly to the manufacturer of the product, who may have a starting order quantity.

Create Sales and Marketing Plans

As a distributor, it is your responsibility to get the consumer or retailer to buy your product, so you need to work hard to understand their needs. Use all the resources available to you to drive their demand for your products and ensure that retailers place orders with you.

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