Step 1: Use a drop shipping approach
Make sure your product is available on the right local platforms and in the right language. Once you have received an order, you can send the product directly to the end customer. The right service provider can also do this for you and also respond to questions, claims in the local language.
Step 2: Add local shipping
As volumes increase and become more predictable, you can make your product more attractive by shipping inventory to the country, allowing you to offer shorter delivery times. Local handling parties can import your goods, keep your stock and pack and ship your products on request. This way you save on shipping costs and increase your margins, at least if you have the volumes to overcome the monthly storage and financing costs of your local inventory.
Step 3: Add offline
For a number of products it is useful to also have offline points of sale, if only for your customers to touch, feel and try your products. Showing the online sales of your product also makes it less risky for retailers to start distributing. Alliance experts know the market, can easily select the right retail chains and approach the most relevant distributors. Read more about our matchmaking services.
Export distribution strategy
Distributors are like employees and customers in one. They considered your business and sell your items as an employee while meeting extremely demanding customer requirements. Some international distributors focus more on the company with regard to sales rather than technical service.
Difficult technical issues are usually handled by suppliers, while trivial technical issues and support are covered by the distributor. Ideally, a good report should be between the distributor and the supplier to optimize the performance of the distributor.
An important factor in the relationship is the distributor margin. You will need to see what a reasonable selling price is and what portion of the margin between the selling price and your cost should be given to the distributor (and possibly the retailer). Balancing this relationship will also help balance the relationship.
Always know how the dependency works: is the distributor dependent on you or are you dependent on the distributor. Especially when it comes to large-scale chain stores and supermarkets, you may have to pay first to get your product on the shelves: list fees or gambling fees.
This requires good financial agreements, but also a good relationship with your distributor.Beddu
Channel conflicts and management
Using your own sales team, distributors and online sales in combination can create channel conflicts. Your distributor may be uncomfortable with the sale going online, especially if he has gone to great lengths to open the market.
This requires good financial agreements, but also a good relationship with your distributor.
Here are a few steps to ensure a smooth relationship with suppliers and distributors:
- By sharing your vision, practices and resources with your distributors, you can create a bond of trust that could harmonize the mutual benefits. This can also keep your distributors interested in the types of services you offer them.
- You must be willing to help your distributor’s business succeed in their efforts. To achieve this, you need to know your distributor’s business like the back of your hand to have an impact on your trading relationship. In this way, you have also gathered their respect for your company and their sincere help to help you achieve your ultimate goals.
- End customer feedback is essential in creating a harmonious relationship between you and your distributors. Feedback can invoke service of item incidence related to your items. As a supplier, this feedback can improve your service and items, which in turn improves the sales and positive image of your distributors.
- For your international distributors, it is imperative to learn about your distributor’s culture and traditions to avoid being intrusive or dictatorial.
Distributors are partners. As a manufacturer, you must learn to treat them with respect as you would your own employees. Distribution, especially internationally, is a specialized function that requires a great deal of expertise.<