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Starting a Distribution Company

Distributing means you are extending your hand to those people who do not have an access to have the product or thing they would want to have.

Distribution companies have been in the business scene for many years already and they have shown their importance to the consumers.

The Distribution Business

The distribution company has the job to distribute particular products coming from faraway places or they would distribute products to small stores or department stores. They are authorized to distribute products that are included in their distributing list. Most of the time, they are the ones who become the supplier of big shopping malls and markets in a certain area. Their clients would consult them with the products that they provide to the store and when they both agreed with the products to be distributed, the distribution company will be the one that has the authority to deliver those particular products to those stores that ordered it from them. This type of business is very efficient and badly needed by those stores that are in the remote areas or in those areas where there is a limited number of suppliers and distributors around.

You must bear in mind that a distributor’s job is to dispense goods and sells it to the retailers. They are the ones responsible for the supply of the retailer’s store. For your own information, a retailer is the ones who sell the product or goods to the consumers. To sum things up, distributors sell their goods in a wholesale basis while the retailers sell the goods they bought from the distributors to the consumers in a retail basis.

Kinds of Distribution Company

There are lots of kinds of distribution companies. There are music distribution companies, food, medical, and other forms of distribution companies. Even oil is part of the products being distributed by companies. Most of the distribution companies are located in countries or areas where there is a high need of the product they distribute but there is no enough resources in that place of that product. An example of this is the oil distribution. We know that oil is very abundant in the Middle East countries.

There are lots of distribution companies in the Middle East that distribute their oil products to countries which badly need their products. In Asia there is a large need of oil and other products. You should remember that there are other products being distributed to different locations. You just have to research and study what kind of product is badly needed in that area then the next good thing to do is to study how you will be able to distribute those needs to them. A good business plan on this kind of company is badly needed. No wonder, other distributing companies would conduct feasibility study first before they start their distribution in a particular area. In whatever kind of business, a concrete business plan and strategy will definitely help in the great progress of the company.

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6 Comments

  • Alpa said on August 31, 2011
    I am planning to start a business. I have an idea but i do not know how to start it. I am looking for a pick and pack service for companies in the US, i am located in CANADA. Please advice.
  • kimokaze said on September 21, 2011
    I live in a real bad community and struggling everyday shoes to try to make ends meet and I need some type of information on making high end stilettos shoes I have the qualification and the design also customize logo name for my shoes
  • giuseppe vazquez said on September 14, 2013
    I have a 3,000sf warehouse 24ft high. i am currently in the outdoor flooring and hardscape business. i have some experience in logistics and warehousing, what type of industry do you recommend servicing. i am in miami hialeah gardens, fl, 33018. area would appreciate some advice on pursuing these idea.
  • mohammad said on November 25, 2013
    hi i am planning to start distribution service is there any necessary of license or tin no plz help me.
  • tracy said on January 6, 2014
    I am in the logistics field. We do warehousing, pick n pack, distribution. Located just outside of Boston. feel free to get in touch.tracy@billsheas.com
  • Abelina said on January 26, 2015
    I am currently based in Dubai and planning to start my own business in general trading. I have experience of 20 years in showroom sales was selling building material in a showroom located in Dubai. Need some ideas on what products to trade with in hotels and office.

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