Which Method of Product Distribution Should You Choose?

Distribution Channels: What are They, Types & Examples

When you go into business, you might be unsure how to start making or selling your products. Understand the collaborative relationship between product manufacturers and distributors, and which role best suits you.

Product Manufacturer

To become a product manufacturer, you will need a large facility to safely operate machines for filling and bottling, along with any other equipment required for production. Work closely with the product formulators as there might be a few rounds of trial and error to get the desired results. All ingredients and wholesale packaging materials will need to be sourced to your facility in bulk to avoid production delays. Contact freight companies Vallejo CA so you can better understand your transportation options for various materials. Prepare accordingly for any items that might require specific storage conditions like protection from UV light or climate control.

Product Distributor

Product distributors work closely with manufacturers to sell and distribute products to other retailers on a greater scale. As a distributor, you can expose companies to larger audiences and help them grow. It can be difficult to otherwise branch out in the market and reach new customers. As a distributor, it is crucial to budget the finances and space needed to store bulk orders. You can then sell products to wholesalers, retailers, and agents for further distribution. Wholesale distributors provide the product to retailers who work directly with customers to fill orders online or in stores.

Product Reseller

If you lack the resources and physical space needed to make or distribute products on a larger scale, consider selling products as a reseller or affiliate. As mentioned, manufacturing products requires a fully equipped facility while distributors need plenty of storage and warehouse space. Reselling products, however, does not require much space at all. As a reseller, you won’t hold onto inventory or keep any products in stock. Instead, you will allow customers to purchase products directly through you so you can then earn a commission of the sale price.

For your business to partake in any trade or build professional relationships, it is important to understand the different ways you can sell and distribute products.  

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