A distributor is an entity that buys products or product lines, stores them, and resells them to retailers or directly to customers. Depending on the contract with the manufacturer, a distributor might not be allowed to sell competing products. Distributors are allowed to describe themselves as a distributor of a particular product; however, they aren’t allowed to use the name of the product as part of his business name. Distributors offer a wide range of services such as: educating resellers about new products, contract negotiation, product information, technical support, and other services.
Distributors typically have an official agreement with the manufacturer of a given product, which limits them from selling competing items and products. Usually, distributors offer additional services to customers and users by providing estimates and product information, as well as sale and technical support. It should be noted that distributors will sell to dealers but also at times directly to the public.
What a Distributor Wants to Know
Distributors may have specific questions and concerns, especially if you’re approaching them as an e-commerce seller. You can expect distributors to inquire regarding the following:
- Expected profit from product
- The cost of stocking and fulfilling your product, and which methods you may choose for these issues.
- Is your product scalable?
Do you sell multiple products, and do any compete with each other?