Business Acquisitions - Wholesale / Distribution

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Wholesale distribution is a large-scale business and involves lot of business acumen and investment to get the business going. Wholesale distribution is all about purchasing from manufacturers and wholesalers to sell it to retailers at a profit. Normally, volume of business in wholesale distribution is large and you do not market small quantities of goods.

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Wholesale distribution could be of three different types - 

1.        Wholesale distributors selling goods of manufacturers and wholesalers,

2.        Sales branches and offices of manufacturers,

3.        Brokers, agents, and commission agents

However, wholesale distribution is an independent business and you are responsible for the sale of your goods. You can store your goods in warehouses and ship them to retailers or sell directly from your warehouses. You only sell to companies and do not deal with the buying public directly. 

Wholesale distributors sell a wide range of products like durable or nondurable goods. Durable goods include industrial supplies, furniture, office equipment, etc. while nondurable goods include groceries, chemicals, paper and printing material, etc.

To start any wholesale distribution business, you need not be an expert salesperson. You should have sharp negotiation skills to buy products at low prices and sell at profitable prices. You should have the ability to manage administrative and financial aspects of a business with large volume and simultaneously tackle all sorts of warehouse dealings like organizing, setting up, receiving, inventories, handling retailers, etc.

The Internet has opened new opportunities and ways of developing your wholesale distributor business. You can set up your information web sites through e-commerce. Sometimes, such e-commerce tools do away with many intermediaries and you can deal with your customers directly, yielding higher profits and better personalized dealings.

You can start with your wholesale distributor business by buying any existing business, by buying any business opportunity, or by starting from scratch and building up your whole business. All possibilities have their own degree of risk and hence, you should start your business considering all factors. Different businesses need different amounts of capital investments.

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