Trade Leads

Wholesale Distributors - Qualities of a Good Product Distributor

Articles > Wholesale Distributors - Qualities of a Good Product Distributor

One of the hardest things about starting an importing business is finding a reliable and efficient product manufacturer or distributor.

The relationship you establish with your distributor is one of the most important business relationships that your business will have. In essence your distributor is very much like your partner. Of course it goes without saying that some distributors are better than others. There are several things you need to keep in mind when deciding on an international product distributor.

Unfortunately the profits that international trade can make are tempting and there is very little regulation as far as the enforcement of international trade contracts. Because of this, hundreds of illegitimate or illegal distributor companies have emerged to prey on unsuspecting business people. It is vital to make sure that your products distributors are legitimate. You need to make sure that the companies are in good standings by contacting their local US embassy. They will be able to determine if the companies you are interested in doing business with are licensed and able to conduct legal international trade.

Financial stability
You do not want to be your distributorís biggest client. If your business is going to carry the distributor then you cannot count on them to be financially secure enough to care for your products. If the company has any financial interests in the US then there will be a uniform commercial code filing filed at the local county court as well as any federal civil litigation suits filed at the US district court.

Physical condition of property
One of the biggest and most overlooked mistakes any importer can make is not spending the time and money to visit their wholesale distributors. It makes very little sense to essentially put the success of your business in the hands of a complete stranger. Go to the distributors warehouses, inspect the quality and conditions of their property and decide whether you want your products to be housed there.

Insurance and product guarantee
It is extremely important to insure your products as well as verify that your distributor has adequate insurance. Additionally there must be some sort of product guarantee that protects your financial interest in the case of damage or theft. This way you are not playing the middleman between your distributor and their insurance company.

† The relationship you have with your product distributors could very well determine the success or failure of your business. As long as you do your homework and follow these basic guidelines then you should have no problem establishing a long lasting and profitable relationship with your distributing partner.

More International Trade Articles