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What is a distribution partner?
A distribution partner purchases products in bulk from manufacturers, stores them, and resells them to retailers or directly to end customers. Acting as a crucial link in the supply chain, distribution partners help manufacturers reach wider markets and manage their logistics more efficiently.
There are a few major types of distribution partners that your company may work with, including:
- Wholesale distributors: Purchases products in large quantities to sell to various retailers. They benefit manufacturers by handling large volumes and providing extensive market reach.
- Value-added distributors: Go beyond the traditional role of logistics and order fulfillment to provide additional services that enhance your company’s products or solutions for customers, like customizations or ongoing support.
- Specialty distributors: Focus on niche markets or specific industries. They provide deep expertise and targeted market access, making them ideal for niche products.
- Export distributors: Facilitate international sales and navigate global trade regulations, helping manufacturers enter new global markets and comply with complex export requirements.
- Online distributors: Specifically sell products through e-commerce platforms, expanding digital reach for a company
Why would you want to work with distribution partners? Distributors possess in-depth knowledge of local markets, consumer preferences, and regulatory requirements, helping you tailor your products for specific markets. They can also reduce your storage costs and ensure products are readily available for retailers based on demand.
Finally, distributors can help mitigate risks for your company by absorbing potential losses related to slow-moving or obsolete inventory, while also offering the ability to scale your distribution efforts quickly and efficiently to meet fluctuating demand and seasonal trends.
By partnering with distributors, your company can focus on your core competencies, such as product development and innovation, leaving distribution to the experts. This strategic collaboration enhances efficiency, reduces costs, and accelerates market entry and expansion.
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Accelerate engagement and profitability at every stage of the partner lifecycle with Impartner, the top-rated partner management solution on G2. Download our guide on how to build your own thriving channel ecosystem!
