What Are Distributors
From Your Southern California
Freight and Shipping Company
River Plate Fulfillment and Trucking

What are Distributors...

River Plate Fulfillment is bringing you this series of pages on wholesale distributors because many of our customers are distributors or are interested in becoming a distributor. The services we provide (Pick and Pack in Southern California, Nationwide Trucking, and fulfillment in California...to name a few) could not be without the loyalty and trust that our clients' relationship is built upon. Our goal is 100% satisfaction on the work and service we provide to all of our customers.

What are Distributors / The Basics

A wholesale distributor is an entrepreneur who agents manufacturer-to-customer sales of wholesale goods and merchandise. Normally, a wholesale distributor engages out of a store or warehouse, though in the age of the Internet, increasingly are opting to set up shop online.

The basic job of a Distributor is to get their products from manufacturer. Most distributors carry catalogues or brochures where you can find information and costs of the products. Some of them accept a consignment agreement or you can pay them for them ahead of time with a business credit card. Since the buyer is buying wholesale (in bulk), the seller usually gives about a 50 per cent discount from the retail price.

A consignment agreement is a contract where the owner of the goods turns them over to a seller (such as a store) who will attempt to sell the goods. If the seller sells the goods, the seller and the owner of the goods share in the sales price.

Qualities of a Distributor

-background or experience of distributing same products
-productive sales staff
-good relationship with an import/export company
-focus on the said business
-storage and have means to distribute products (a fulfillment house)
-professional and reliable post-sales service
-marketing abilities

What are Distributors / What is a distribution agreement?

The contract should:
-guard against exclusivity (most distributors want exclusive rights for the whole region even if their network is limited to one province or even an area within a province)
-agree on volume targets or minimum orders
-manage risks, for example transportation
-contain the terms of the standard individual sales order
-have escape clauses including performance reviews
-allow for arbitration in case of dispute

Types of Distributors

Merchant wholesalers are independent enterprises that buy finished products from producers and other wholesalers and sell to companies for resale or manufacturing consumption.

Brokers and Agents do not take ownership of inventory and they offer their customers an extremely limited number of services.

Miscellaneous Distributors are specialized distributors found in certain sectors of the company.

What are Distributors / Durable vs Nondurable Goods

Durable goods are products that are designed to last for an extended period of time without rapid deterioration.

Nondurable goods are products that can be consumed quickly.

Thank you for visiting the What are Distributors page. For more pages on the topic of distributors, follow these links:

Become a Wholesale Distributor

Companies Looking For Distributors

Gift Distributors

Toy Distributors

Beauty Distributors

Finding the Right Bible Distributor

More Bible Distributors