Understanding the Distribution Channels
Buy merchandise directly from the manufacture. Before you contact
a manufacture, it is crucial to do researches and decide what to sell.
In some situations, manufactures may not want to sell their product directly to
you because you may not meet their established Minimum Order Quantity (MOQ); however, if you demonstrate
interest in exploring the industry, manufactures can refer you to one of their
distributors.
Importer or Exclusive
Distributor
Companies that are granted right to import and distribute
the product to wholesaler stores.
Wholesaler or Regional
Distributor
Distribution Center that is responsible to redistributes the
merchandise to regular or local wholesaler stores.
Jobbers
This is another group of companies that make delivery of the
merchandise to local stores.
Supplier Selection
When dealing with suppliers remember:
- Before you order large quantities, ask for a sample
- Before you purchase a product from a foreign broker, evaluate yours risks by comparing the cost of buying the same product from the local wholesaler stores (Risk V Return). It is good to make mistakes, but you must know how much you can afford to pay for your mistakes
- Establish quality control metrics to ensure that your product arrives in the condition you desired
- Create a Supplier Score Card to evaluate if the supplier meets your expectations
- Start small
- Proof your model and then expand
