What Are the Different Types of Distributors?

Distributors can help you get your product to market quickly, and free up your time so you can focus your efforts on other areas of the business.

Why should any individual or business organizations take up distributorship?

Because by distributing the products of a renowned manufacturer, they can gain a foothold in the market with lots of profit & experience along with a huge client base in a targeted area.

There are around 5 types of distributors :

• Intensive Distributors :

They usually function when the manufacturers or vendors want to sell their products as quickly as possible to end consumer. Such distributors work with many vendors and usually sell high volumes of goods at lower prices and earn lower margins. Even though the profits are generally low for the distributor but manufacturers can be benefited from improved cash flow.

• Selective Distributors :

Such distributors generally have huge market experience and are adept in distributing products on the basis of rules and regulation set by the company.

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• Exclusive Distributors :

They generally function when the company has a niche market and product with targeted consumers. There will usually be only one exclusive distributor for each territory.

• Direct Distributors :

In this type, distributors are hired for selling and delivering products directly to the consumer, this is done in order to reduce costs by removing the middle man.

• Indirect Distributors :

In this type, distributors use a network of wholesalers, retailers, and resellers in order to distribute the products of their clients to consumers, and is the most common type of distributor.

Now that you know the different types of distributors, you can choose the one that best fits your business needs. Have you ever worked with a distributor? If so, which type? Submit your requirement on distributor registration form.

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