Types of wholesale distribution and sales channels

When you are selling products through different channels
you have to know your customers and how they sell and what
they sell. While you want to be able to provide as many
customers as many products as you can – you can't sell
everything. By learning about the various kinds of
wholesale distributors that there are, you can find out
where you may be able to step into the business.

There are many types of distributors but for now we'll talk
about 2 basic ones; those that sell consumer products and
those that who sell industrial or "business to business"
goods. Those that sell consumer products are much greater
in number and are often where many people begin their
wholesale business. Those that sell consumer products act
as a go between for retailers and the manufacturers of the
products. In the industrial wholesale business, you would
act as the intermediary for manufacturers and industry
service providers.

Consumer goods wholesalers might work with products such as
apparel, jewelry, beauty products, shoes, and electronics.
Things like groceries and paper products are also
considered to be smaller goods that do not fall into an
industrial category. These are generally the products that
you find in stores and online. A customer would be able to
simply go to the retailers that you are selling these items
to, and then purchase the items. You would also see these
kinds of products on Internet auction sites – such as eBay.

Industrial or "business to business" goods are larger
profit items, but also require more effort on the
wholesaler's part. These can include items such as
ceramics, hardware, building supplies, and more. Things
like machinery and equipment would also fall into this
arena as well. You could also establish a motor vehicle
parts business or work with petroleum products. Likewise,
you could also sell lumber and other construction
necessities. These items tend to be larger in quantity as
well as size, requiring the wholesaler to have a larger
storage space as well as equipment to move them from their
warehouse to the retailer.

While the industrial goods wholesale business requires more
effort, it will also reap a larger profit. However, it can
be confusing when you are first establishing yourself as a
wholesaler. With such large and complicated items, you may
not feel as confident at pricing the products or even
relating information to the retailers. It can be helpful
to begin with smaller goods in order to keep your overhead
costs minimal – you can usually just use your car and a
spare room in your house. And once you begin to make a
profit from your initial business, then you can move into
the larger goods.

If you already have a background in larger goods, you may
find that dealing with retailers that want to purchase
these kinds of goods is an easier task than most. And with
the proper research and time, you can become successful in
passing on your knowledge to others – making yourself a
profit in the process.

No matter what kind of products you sell or what kind of
channel you target you always have to learn and know all
distribution and sales channels. Once you learn about the
general types of distributors you have to learn about
specific sales channels. Channels such as convenience
stores, supermarkets, beverage distributors, cash and
carry, OEM's, etc.

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Jorge Olson is a consultant, speaker and entrepreneur and
owns several Wholesale Distribution companies. Learn more
about Distribution and Sales Channels at
http://www.DistributionBusiness.com

Jorge is also the
create of the Greatest Marketing Strategy on the Planet
found at http://www.ShotgunMarketing.com