Import From China Business

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A practical guide for starting a small business

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Import Distributors

Purpose of Import Distributors

Import Distributors play a vital role in the import business by taking possession of goods for further delivery or sale into a country.  Suppliers or exporters benefit from Import Distributors because multiple wholesalers, retailers or end consumers can be reached through a single distributor. Companies in the home country benefit because they do not need to search abroad for a particular product.  They can order through the Import Distributors.

Types of  Import Distributors

The two types of Import Distributors are based on how goods are distributed or moved through the channel:

  1. Full Service Distributor - A Full Service Import Distributor imports different products from different suppliers, takes possession of the goods, and warehouses them.  The Import Distributor makes a profit by selling the items to a wholesaler or the end consumer at higher price.
  2. Drop Ship Distributor - The Drop Ship Import Distributor does not warehouse the goods.  He or she imports different products from different suppliers.  After taking possession of the goods, they are delivered directly to the wholesaler or end consumer without having to warehouse them.

The Import Distributors Agreement

As someone starting out in the Import Distributors business, you will need to approach exporters from other countries who want to select you as the distributor for their products in your country.  You will want to clearly get an agreement on the following operational areas with the exporter:

To become a successful Import Distributor for your exporter, you will need to clearly document each other’s your expectations.  Having a clear and detailed set of rules to run your operations will ensure a long and prosperous working relationship.