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How to start a distribution business

A distributor stocks a brand's products and supplies them to retailers in a territory. It is a steady business built on reach and reliability. Here is how to start.

Secure a distributorship

Approach brands directly through their distributor enquiry channels rather than paying middlemen. Understand the investment, deposit, target and margin before you commit, and get the territory and terms in writing.

Set up stock and storage

You need a godown or storage suited to the product, plus working capital to hold stock. Plan the space, handling and any cold-chain or safety needs before the first consignment arrives.

Build the retailer network

Your revenue depends on how many retailers you supply and how often they reorder. Visit shops, take orders, deliver on time, and offer fair credit to build loyalty across your territory.

Run tight on cash and margins

Distribution margins are thin, so volume and cost control decide profit. Track stock, collections and expenses closely, keep a cash buffer, and grow the territory only as fast as your working capital allows.

Sourcing on TradeCRM

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