When looking to expand your business, one of the most critical elements of marketing is product distribution. Whether you distribute your own products or have an outside company to do so, there are many options and companies available to you. For some, having the distribution handled by a third party makes more sense. In order to choose which option is right for you, a closer examination of each distribution company may be in order. The first thing to consider when choosing a product distribution company is what type of product you will be distributing.
Questions to Ask When Choosing A Product Distribtion Company
Will you be selling physical goods such as printed materials? Or will you be selling digital products such as eBooks? There are many different ways that you can market and sell your product through a distribution company.
Many people who are just starting out find that it is easier to sell eBooks rather than physical goods. Therefore, it may be more advisable to choose an eBook product distribution company that caters directly to eBook readers.
How much product will you be distributing?
This is yet another important question to ask a product distribution company. If you have only a small amount of product to distribute, you may not need a company with extensive capabilities. However, if you have a large amount of inventory, an experienced distributor can make sure that you receive the product on time and in proper quantities. The last thing you want is to have to send merchandise to your customers that you didn’t receive in good quantities.
When looking at a product distribution, you will also want to ensure that the distribution company will be handling your product efficiently. You will want a distribution service that can handle all of your product distribution needs, including regular product shipments, as well as on-time deliveries. Having a product distribution service that is too flexible is better than having a service that is too rigid.
You will also want to look at the cost of the service, including the fees charged for time periods and pick-ups.
Some companies charge extra for pick-ups, especially if you need a lot of them. Find out what rates apply to your area and the type of product you will be distributing. For example, do you need fuel for your truck or can you arrange for your distributors to fill your gas up at the dealership? You will also want to find out if a fee is charged for late pickups. If you are using a nationwide distributor, make sure they will charge a one-time fee if you decide to switch distribution points.
How will you be paid for your product?
When choosing a product distribution company, take into account that a company can take a variety of methods to pay their distributors. A service based distributor may pay by direct deposit into a bank account. If you are using a nationwide distributor, they will either bill you for your product every time they ship it or will issue you a prepaid card or bill you later. The best way to get paid for product distribution is to pay according to the terms of your contract with the distributor.
What will happen if you exceed your shipment capacity?
Many products are large enough that they can be fulfilled on a regular basis without exceeding your shipment size. If a distributor does not offer this flexibility, it’s likely that you will need to find other distribution partners or work with an independent manufacturer to fulfill your orders.
Product distribution can be a complicated matter. You want to choose a product distributor that can provide you with a consistent product and that has a good track record. You should also ask questions about their product availability and costs before purchasing from them. When you take all these points into consideration before you hire a product distributor, you can avoid costly mistakes in the future.