How to Become a Business Distributor
Distributors are the vital link between manufacturers and retail companies. They get products into stores, which in turn are bought by consumers. No matter what industry you're interested in working in, whether it's clothing, food, or books, there is a need for business distributors. Starting a distribution company can be a very lucrative business venture, provided you thoroughly plan it.
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Instructions
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Choose what type of products you want to distribute. Unless you want to stock a bit of everything, it is best to choose a niche. Ideas for products to distribute: officially licensed sports merchandise, dried foods, books, women's clothing, shoes or jewelry.
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Get the appropriate licenses from your state and county clerk, including an assumed name certificate (DBA), tax ID number, and resale permit (if required in your state). If you plan to have two or more employees, you will need an employer identification number from the IRS.
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Lease a warehouse large enough to hold your inventory--food distributors will need a food-grade warehouse. The amount of space you need depends on what you're distributing and how much inventory you plan to hold at once, but it's good to start with at least 800 square feet. This amount of space will cost you between $500 and $800 per month.
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Develop an inventory system before you buy any products to stock. For example: if you're going to distribute shoes, figure out whether you will organize them by brand, item number, or size. The point is to make sure you can easily find the products you need to send out, so that you spend less time packing shipments and have less chance of sending out an incorrect order.
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Contact manufacturers who have marketable products you can distribute. If they sell their products wholesale, there is a good chance they'll be willing to have them distributed. Your discount on merchandise as a distributor should be greater than retailers who buy wholesale, since you will be purchasing product in larger amounts.
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Launch a website for your distribution company. You can sell online to retailers, and require them to apply for an account as well as provide their tax ID number or business permit as proof of their intention to resell what they buy. Or, your website can be purely informational, giving retailers information about what products and brands you have available, as well as your order requirements.
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Market your products to retailers by taking out ads in niche business magazines, on business websites and blogs, and sending brochures to independent retailers likely to buy from your distribution company. Make sure you reach out to retailers with physical stores and to online retailers.
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