online retail websites. This is rare, but there
are still some companies who operate like this, not allowing any independent
retailer – large or small – to carry their products.Strict
Requirements of Wholesalers Many brands don’t directly control
their distribution channels, opting to allow wholesalers to handle
distribution to retailers. However, even if they don’t directly
control distribution, they still may establish policies that their
wholesalers must follow. These policies may be very similar to the
policies often employed by brands that directly control distribution,
employing one or more of the following requirements: A substantial
minimum sales volume A physical presence, not just an online storefront
An established history of retail sales and an exemplary credit rating
Strong recommendations from other vendors with whom a business has
dealt Do Your Research.
Call the Manufacturer.Companies who operate their distribution channels
with any of these levels of control will most likely not allow small
volume wholesale purchases, eliminating distribution to start-ups
with limited capital. The best advice that I can give to a prospective
retailer is to pick up the phone and do your research directly with
the source. Call the company’s sales or public relations department
and inquire about their distribution policies before putting forth
a lot of effort searching for their products through wholesalers.
You’ll potentially save yourself hours of wasted time. Not to
mention, if you happen to meet the requirements for establishing a
direct relationship with the manufacturer, there is no better place
to obtain your products. In my next article,
I’ll look at options that are available for the majority of
prospective online retailers, those who don’t have an endless
source of investment capital that would allow them to meet the reseller
requirements of any manufacturer. For those businesses, the newest
merchandise from the most popular brands may not be an option. However,
that doesn’t mean that the dream of owning an online retail
store is out of reach. Until then, do your research by calling manufacturers
to inquire about their distribution policies, and, as always, good
luck in all of your business ventures!About the Author:Kirk A Larson
has worked for over 15 years in business as a writer, personnel manager,
and most recently for the last 4 years as a successful entrepreneur.
To learn more about Wholesalers, visit The Wholesale Suppliers Registry
at http://www.wholesale-suppliers.net