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Annabel Andros | annabelandros

Is It worth Hiring Distribution Companies for Your Products in London

Dec 21st 2014 at 11:29 PM

The traditional model of selling products to customers in the market has always revolved around two things- the manufacturer and the distributor. The distributor delivers to retails what the manufacturer makes. But then does this business model still hold relevance in today’s time? Or do manufacturers really need distribution companies in London to sell their products?

The one big advantage of using the manufacturer-distributor system is that the overall task of getting the products from the factory to the client becomes easier to manage. While the manufacturing company can focus entirely on product development and making sure the production runs well, the distributor has to work only on ensuring that whatever product it receives from the manufacturing company gets delivered to all delivery points for customers to buy. Distributors have their own delivery channels through which the product is given to small and big retailers, who then sell directly to the customer.

Distribution Companies London

But then it is not necessary that this model is used by all businesses. Depending on the product, it is possible to replace the distributor with a logistics company, whose task is to deliver the product to any place around the world without having to know what the product is. This is done by a lot of businesses around the world, and is widespread in the ecommerce business world as well. The online website becomes the retail store, the logistics company and the manufacturer just has to put a system in place to run the website and take orders from it.

Things Distribution Companies Look For Before Agreeing To Sell Your Product

If you have decided to go ahead and sell your products to the market through expert business transfer agents in London, then there are things you should know. Before a distributor accepts to sell a product, there are some things that are considered.

The first and foremost thing is how much profit the distributor would be able to make on your product, and if there is any, then how much. Then there are things like how much stock would he have to take from you at a time, would there be exclusivity or not, and are there any other products as well that you are ready to sell to through the distributor along with the main product.

Conclusion

Small or midsized business can try using alternative routes of selling their products and increase their profit margins by eliminating the distributor. See Amazon for example. But then it’s not as if distribution companies in London are not at all important, they do play a very important role for a lot of businesses in taking their products to locations across the UK making them available for sale via retails stores.

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