How to find distributors for your product

While you are building your business, it is essential to have the right distribution partners to work with. In addition to providing the right products at the right price, the ideal distribution partner will also be able to offer essential services such as warehousing and logistics to help you accelerate business growth. In order to find distributors for your product, you need to follow a number of steps that will help you to find the right one. Let’s first look at the benefits of working with distributors.

Benefits of distributors

In fact, distributors offer much more than only facilitating warehousing and logistics.

1. Distributors have a strong network through the relationships they have built over time with retail buyers.
2. Distributors know how to negotiate and close a good deal for your product with retail buyers.
3. Distributors can get your product in front of the right buyers easier and faster because of the trusted relationships they have built.
4. Distributors usually buy larger volumes as they sell to multiple retailers in the market.
5. Distributors take care of marketing and often in their local language.
6. Distributors handle product returns from retailers. This is a huge benefit for retailers, not to return products overseas.
7. Distributors know what product certifications are needed for your type of product in their local market.

Finding the right distributor for your product can be one of the most frustrating and time-consuming tasks for a brand. It’s true, there are many excellent distributors out there but at the same time, substandard service exists everywhere and within distribution, it is no different. With this in mind, the right distributor can significantly grow your business in the target market or stall it.

What many brands don’t realize is that 85% of retail sales occur in-store. If you do not prioritize getting your products on retail shelves, you limit your potential sales significantly.

But how can you find the right distributors to get your product out there?

We wish distributors and retailers would come knocking on our door wanting to carry our product in their assortment, but unfortunately, that is not likely to happen. The reality is that you have to put in hard work to stand out with your product and convince buyers to select your product.

Set your business goals 

In order to find a great distribution partner, you should first determine what you are looking for in a partner. Also, you need to determine what your short-term and long-term goals are. More specifically, you need to identify in which category your product belongs. After that, you have to find who are the distributors within this category. Probably your product falls into multiple categories. Thus, you can collaborate with several distributors in the same market but in different sectors.

For example, imagine you have a smart door lock that can be sold to smart home buyers. However, a smart door lock could also be a fit in many more different sectors, such as security companies, the hospitality sector, etc. You can even target restaurants and gyms where employees need access to certain personnel facilities easily. So, try to broaden your spectrum and do not focus on just one distributor in one country and subsequently limit your sales.

So, now let’s look at how to identify the right market.

How to identify the right market

One of the mistakes companies make is to start by targeting the largest markets first. For instance, the US, UK, Germany, Japan, Spain, and France. However, that is not the best strategy, as usually, it is not a one-fit-for-all approach.

In order to evaluate if a market is suitable for your product you need to research:

1. Price competition in that target market.
2. What are the problems your product solves and who your end users are.
3. What certifications are needed in that market.
4. GDP per capita for the country you are targeting.

For example, imagine that your product is a high-end mobile accessory product and you are targeting less wealthy countries, such as Portugal or Greece, where the product will be perceived as too expensive.

Once you have a clear idea of what you are looking for and which is the right market for your product, you can begin the process of finding a distribution partner. 

Where to find distributors

1. You can research online potential partners that are specialized in the industry of your interest and learn about their experience and expertise in your target markets. 

2. Search distributor directories based on location, industry, product categories, etc.

3. There are several agencies out there that can assist in connecting you with distributors. This is usually an expensive solution since the standard commission is around 7% to 10% for each product they sell to distributors or retailers.

4. Ask for references from other brands that have worked with the potential partner, and reach out to those references to learn about their experiences. 

5. You can attend trade shows and industry events to expand your network, make your product visible and meet potential distributors. However, they are costly and you usually need to invest months in preparation for one show. It is only recommended to do this when your company has a lot of traction and high sales growth.

6. You can register at Tradesnest which is a global B2B platform where brands present their products to distributors and retailers directly. In addition, companies can get professional advice with their sales strategies and they can optimize their trade agreements, pricing, and presentation of their products.

Finding the Right Distributor for Future Success

 At Tradesnest we can assist your business to find trusted distributors in over 80 countries around the world within different industries.  

Tradesnest offers brands and distributors the right tools to connect with each other in a very timely and cost-efficient way. Our team of experts has created an environment where it’s easy to communicate with potential partners and quickly take your business relationship to the next level.

If you want to grow your business internationally fast and without spending much money, you can simply register directly on the Tradesnest platform where you can find distributors and connect directly with them. Here are some benefits you can gain by using the platform:

-Discover distributors at a global scale, see their general company profile and decide if they are a fit before reaching out to them.

-Grow fast in new markets and save time researching and pre-vetting distributors – we do all the work for you. 

-Post your products for free and be visible to our pre-vetted distributors’ network.

-Get orders through the platform and get paid easily and securely from 180 countries.

-Use Tradesnest to validate your product before spending a significant amount of time and money on international trade shows.

The best part is that the registration takes 3 minutes, it’s free and once your profile is accepted by our team your company and product profiles will be visible to our pre-vetted distributors’ network.