Import From China Business

A practical guide for starting a small business

2010-2012  Copyright import-from-china-business.com

Import from China
Sell on eBay

Sandra Kell
Ontario, Canada
Baby Products
Profit This Year: $10,400

“I started with $1,000 and began importing baby products from China. I sell them on eBay, Facebook and in my local stores.  After 8 months, I am earning $400 a week.  I finally quit my day job!”

Learn How

Return from Import Agent to Home Page

Return from Import Distributors Import Jobs

Import Distributors

Purpose of Import Distributors

Import Distributors play a vital role in the import business by taking possession of goods for further delivery or sale into a country.  Suppliers or exporters benefit from Import Distributors because multiple wholesalers, retailers or end consumers can be reached through a single distributor. Companies in the home country benefit because they do not need to search abroad for a particular product.  They can order through the Import Distributors.

Types of  Import Distributors

The two types of Import Distributors are based on how goods are distributed or moved through the channel:

1. Full Service Distributor - A Full Service Import Distributor imports different products from different suppliers, takes possession of the goods, and warehouses them.  The Import Distributor makes a profit by selling the items to a wholesaler or the end consumer at higher price.
2. Drop Ship Distributor - The Drop Ship Import Distributor does not warehouse the goods.  He or she imports different products from different suppliers.  After taking possession of the goods, they are delivered directly to the wholesaler or end consumer without having to warehouse them.

The Import Distributors Agreement

As someone starting out in the Import Distributors business, you will need to approach exporters from other countries who want to select you as the distributor for their products in your country.  You will want to clearly get an agreement on the following operational areas with the exporter:

• Geographically coverage - Is it for your whole country or a region within your country.
• Territory exclusivity - Are you the only distributor in your territory or do you have to share your geographical coverage with one or more distributors?
  
  Exclusivity is granted either by geography or by customer type. You may be the only distributor selling in this geography or you may be the only distributor selling to drug stores while someone else could be selling to food stores.
• Product coverage - Are you responsible for only one product, multiple products or the exporter’s entire product line.
• Minimum performance standards - What is the exporter’s expectations of you from a sales perspective.
• Pricing, payment terms and conditions - What is the agreed upon price and for what volume?  How does the exporter want to be paid and by when?
• Product or category exclusivity - Will the exporter allow you to distribute other non-competitive products?  Will you be allowed to carry competitive products?
• Title transfer details - Precisely when does the ownership transfer to you?  If something happens to the goods during transit, what costs are you responsible for?  What costs are the exporter responsible for?
• Contract period - How long will you be granted distributor status? Is there a review period prior to contract renewal?  Under what conditions will you or the exporter be able to terminate the contract?

To become a successful Import Distributor for your exporter, you will need to clearly document each other’s your expectations.  Having a clear and detailed set of rules to run your operations will ensure a long and prosperous working relationship.