Advantages of Using Distributors for Business Expansion

An entrepreneur is always in search of unique ways to enhance and expand his business. If you have a useful product to sell and you are willing to sell it directly to the end users to generate revenue, then this blog, explaining the advantages of having distributors is for you!

Selling directly to your users seems simple but in reality, it’s a tricky proposition as you need in-depth domain knowledge, and extensive marketing expertise. The use of distributors provides several advantages over selling directly

Manufacturers use many ways to take their products to consumers. Either they can create their own end-user division to whom they can sell directly or an alternative option is appointing distributors. Choosing the distribution route for business offers many logistical and tactical advantages in comparison to selling directly. Nowadays finding experienced distributors or becoming distributors in any nook of the nation gets pretty easy because of the availability of online platforms.

Here are a few advantages of selling through distributors:

Administrative Savings

Distributors act as the sales arm of your business organization for which you do not have to pay anything. Appointing distributors gives you access to a mass audience of retail outlets, and you don’t have to spend any money to develop and maintain this business network.

Market Research

Distributors directly deal with retailers on a regular basis, and the retailers sell your products to the end users. So, if you want to conduct a survey on your current product or you want to get feedback on any new idea you are working on, then the distributor can collect that valuable information for you from your end users very conveniently. You would get to know about the customer preferences and demands by utilizing your distributor’s wide network of retailers and you won’t even have to utilize any company funds for this.

Broaden Retail Sales

To find and to sell retail customers can be expensive and also the advertising and maintenance cost can become a big burden for the manufacturer. But if he uses a distribution channel, it becomes the distributor’s responsibility to search for retail outlets for his product

Expansion

The right distributor can get you a “ready-made audience of retail clients” in your preferred location where you are willing to expand your product reach. For instance, if you want to penetrate a new market in Africa, you can find an international distributor from Africa and get access to a network of African retail outlets. Through your distributor, you can also get to know the market demands and audience preferences.

When the supplier decides to sell into a new geographical marketplace, a distributor can provide a well-established retail network instantaneously. This is most effective if you are entering the international market. As the manufacturer handovers the responsibilities to deal with shipping through customs and handling the laws of foreign countries.

Logistics

Distributors are usually backed by a fleet of trucks, vans, and other vehicles to ensure timely product delivery. They also have experienced and trained manpower to carry out the storage and delivery processes systematically. Not all manufacturers have the ability and facilities to handle city-level, state-level, and country-level distribution. Distributors are experts in this domain and know what to do with your product, hence, this job should be left to them.

Core Competency

A manufacturer’s core competency is making his products using effective marketing techniques and using a distributor allows a manufacturer to limit its exposure just to sales and focus its resources on using prompt manufacturing methods.

Customer Service

A manufacturer reserves the right to turn over the responsibility of managing customer service duties to the distributors. The manufacturer has to deal only with distributors, while the distributor has to deal directly with customers and retail outlets. As a result, it reduces the operating costs and administrative responsibilities of the manufacturer.

Why wait?  Start exploring distributorship opportunities, Start expanding business.