HOW TO BE A PRODUCT DISTRIBUTOR
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Here are steps to take to become a product distributor
1) Find the product that people are asking for in your area. Is the demand high enough?
2) Look for the manufacturer of that product online and note down their contact details.
3) Send the manufacturer an email explaining your desire to distribute their products in your area and call them back the next day to confirm your interest.
4) Look for a place and calculate the rent it will cost to rent it, to stock your products.
5) Make sure the place is close to a road and is secured.
6) Calculate the cost of importing your products, stocking and delivering them.
7) Find the selling price of the product and if the price allows you to make a margin of over 30% then you have a business case.
8) Register your distribution as a business.
9) Takes orders from people and in bulk from shops.
10) Ask for 10% upfront payment fee.
11) Use the 10% prepayment to pay for the insurance, fret and delivery fees.
12) Place your order with the supplier.
13) Once the goods are received, have them delivered to the people and shops that ordered them.
14) Demand payment at delivery or agree on payment terms.
15) Receive your money and save some away to pay your supplier, employees, VAT and taxes.
16) Keep track of your transactions on an ERP to avoid paying steep penalty fees to the government.
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How to make money as a distribution business
Distributors have multiple ways to sell their goods in order to get revenue. Here are the five fastest ways to make money as a distributor:
1) Through bulk sales to shops (B2B)
2) Through your own shop
3) Through your webpage or an online marketplace
4) Through your mobile app
5) Through direct message (Phone/ Whatsaap/ Facebook…)