A distribution business is one that sells products to other businesses. It’s a great way to get into the retail side of things without having to open your own store. Today, we will discuss the best distribution business ideas.
You can sell products directly to customers through your website or through a wholesale distributor. Wholesale distributors typically charge a fee for handling the shipping and receiving of goods.
If you want to sell online, it’s important to find out what type of product will be most profitable in order to make sure you’re making money with your venture. You may also need to consider how much time and effort you will put into starting up an e-commerce site before deciding if this is something you really want to do.
The best part about being able to work from home is that there isn’t any commute required. Many people who telecommute enjoy the flexibility because they choose when to work instead of feeling like they have to go to an office every day. For others, working at home means spending more time with their family, which cannot be beat.
Starting a wholesale business is an exciting prospect. It gives you the opportunity to sell products at a higher price than you would normally pay. However, starting a wholesale business can also be a daunting task.
Tips for Starting A Small Distribution Business
There are many types of businesses that you can start. Some are easier to set up than others. If you want to start a wholesale business. Here are some tips to get you started with small distribution business ideas:
- Determine what type of product or service you will offer and how much profit you expect from your new venture. You may have to invest in inventory if you decide on selling items such as clothing or jewelry.
- Decide whether you will operate out of one location or multiple locations. This decision depends upon where you plan to market your goods. For example, if you choose to open retail stores, it might make sense for you to locate them close together so customers do not need to travel far to purchase their merchandise. If you intend to use wholesalers to distribute your wares, then locating all outlets near each other could prove difficult.
- Find suppliers who specialize in the products you wish to sell. Once you find these people, ask about discounts they give retailers. Also, inquire about any special services they provide. These include shipping supplies, promotional materials, advertising help, etc.
- Research local laws regarding opening a store or distributing your own brand name products. In addition, research state regulations concerning licensing requirements. Make sure you understand the rules before you operate.
- Hire employees with experience working within the industry you hope to enter. They should know the ins-and-outs of running a successful operation. Ask potential hires about previous experiences and see if they can recommend someone else who has worked in this field.
- Create a marketing strategy. What methods will you employ? Will you advertise through newspapers, radio stations, television programs, direct mailings, catalogs, websites, social media sites like Facebook and Twitter, flyers, brochures, fliers, coupons, trade shows, etc.? The more creative ways you come up with, the better chance you’ll have of attracting attention.
- Develop a budget. Include everything you think you will spend money on during the first year of operations. Then add 10% to 20%. Remember, you don’t have to break even right away. Your goal is to build enough cash flow to cover expenses while still making profits.
- Set aside time every week to review your progress. Be honest with yourself. Are you meeting your goals? Is there anything holding you back? Do you need to change something?
- Don’t forget to enjoy the process! Starting a business takes hard work, but once you succeed, you won’t regret having taken the plunge.
- Finally, remember: success comes when you put forth effort into achieving your dreams. So take action today and watch your dream become a reality.
Small Distribution Business Ideas
Distributing products is one of the most common ways to earn money. You can sell your own products or work for a company that sells other people’s products. Let’s talk about small distribution business ideas.
You can either sell directly to customers or through retail stores. Whichever route you take, there are many types of businesses you can get into.
Here are some of the best small distribution business ideas:
Clothing Distributor
If you love fashion, then starting a clothing distribution company might be perfect for you. There’s no limit to the number of styles that you can carry. Plus, you’ll always have fresh stock because you’re buying at wholesale prices. Here’s an idea based on a similar concept called “The Outlet.” It offers trendy clothes at low prices. You just buy from them directly instead of going through a retailer.
Jewelry Supplier
Starting a jewelry supplier isn’t as easy as it sounds. But if you’ve got great taste in gems, then selling high-quality pieces at affordable prices may be worth considering. If you want to start small, consider setting up shop online. That way, you can reach many types of buyers without spending too much money. And if you decide to open a brick-and-mortar location, make sure you offer free shipping so customers can get their items quickly.
Grocery Supplier
Grocery wholesaling involves purchasing foodstuffs at bulk rates and reselling them at retail stores. This type of business requires lots of capital outlay upfront, but after that initial investment, you can expect steady monthly income.
Wholesale Pet Food Supplier
Pet owners often prefer purchasing pet foods from local retailers rather than large chain supermarkets. They feel more comfortable knowing where their food came from. The problem is most retail locations don’t accept returns. There’s really no reason you shouldn’t set up shop as a wholesaler who sells only to independent pet shops.
Wholesale Home Improvement Supplier
Home improvements are big business. People spend hundreds of dollars every year improving their homes. Unfortunately, most homeowners end up paying inflated prices because of middlemen involved in the transaction. Instead of getting ripped off like this, why not become your own middleman? Set up a website where consumers can browse various options before making purchases. Then, when someone makes a purchase, send them a quote detailing what they need along with any additional information necessary. Once everything has been agreed upon, ship the goods directly to the customer.
Wholesale Electronics Distributor
Electronics manufacturing companies usually keep huge inventories of electronics lying around just because it’s cheaper to do so. Rather than letting all those extra items sit idle, consider setting yourself up as a wholesale electronic distributor. Contact suppliers directly and offer to buy back old stock. Explain that you’ll be reselling the product at a discount price. Most will agree to terms without much hassle.
Wholesale Restaurant Franchisee
Restaurant franchises are extremely popular nowadays. But many franchisees find themselves stuck dealing with high fees and low margins.
Why not get into the restaurant franchising game instead? Find out which restaurants are looking for new operators and then apply for one of these positions. This way, you won’t have to pay upfront costs associated with opening a restaurant. Plus, you’ll earn a nice monthly income while working part-time.
Wholesale Supplier
If you’ve got experience as a supplier, you might already know how lucrative wholesaling can be. In fact, you may even have set up your own company specifically to sell products to other businesses. However, if you have done nothing like this yet, now would be a good time to jump right in! Start contacting local retailers and offering your wares. Be sure to include detailed descriptions and photos of your merchandise. Also, mention that you accept payment via PayPal.
Auto Spare Parts Distribution Company
The auto spare parts distribution business involves selling replacement car parts to dealerships at affordable rates. It’s an excellent opportunity for those who want to make extra cash without having to deal directly with cars. To start off, contact several suppliers and ask them if they offer discounts for volume purchases. Next, negotiate lower prices based on quantity. Finally, deliver the items yourself.
Once you become familiar with the process, it shouldn’t take much effort to keep things running smoothly.
Dairy Product Distribution Business
Dairy product distribution companies typically work closely with grocery store chains. They provide these establishments with fresh milk, cheese, yogurt, ice cream, butter, eggs, and more. This means that you’ll deal less with individual customers than you will work with supermarkets. Plus, you won’t have to worry about storing perishable goods because they’ll be delivered straight to the customer’s doorstep.
To get started, find out which supermarket chains are currently looking for new vendors.
Medicine Distribution Business
Medicines are one of the biggest industries in America today. There is always plenty of room for growth within the medical supply sector. The best way to enter the market is through medicine distribution. By partnering with pharmacies, drugstores, hospitals, clinics, nursing homes, and doctors’ offices, you can help ensure that patients receive quality medicines at reasonable costs.
In addition to providing services to healthcare providers, you should your own pharmacy.
Security & Surveillance Products Distribution
Security products include everything from surveillance cameras to alarm systems. These businesses sell a wide variety of security equipment to both residential and commercial clients. In fact, many homeowners use home security devices as part of their insurance packages. Thus, this type of wholesaler makes money every time someone buys a security system.
If you’d like to learn how to set up your own security company, then read our guide: How to Start Your Own Home Security Service.
Sports Goods Distribution
Sports goods distributors stock athletic gear, including baseball bats, basketballs, football helmets, golf clubs, soccer balls, tennis rackets, and volleyball nets. Many people purchase sports equipment for themselves but also buy it for others. For example, parents often give children sporting equipment so that they can play outside safely.
As long as you know where to look, you can easily find wholesale buyers for many sports equipment. You just need to do some research before making a decision.
Car Accessories Distribution
Many consumers enjoy customizing their vehicles by adding aftermarket accessories. Car accessory manufacturers produce everything from spoilers to sunroofs. If you’re interested in becoming a distributor for these kinds of products, then check out our article on how to start a car accessory distributorship.
Coffee Distributor
Coffee distributors distribute coffee beans throughout North America. Some coffee wholesalers specialize in certain varieties, while others focus solely on specialty coffees. Whichever kind of coffee you decide to offer, make sure that your source high-quality ingredients. Otherwise, you could end up losing money instead of earning it!
Computer Hardware/Software Distributors
Computer hardware and software wholesalers provide computer parts and other related supplies to retail outlets. They typically have warehouses full of inventory ready to ship. This means that they don’t necessarily require any physical presence in order to function. Instead, most companies rely upon third party logistics firms to pick, pack, and deliver orders.
Custom Furniture Manufacturer
Custom furniture makers create unique pieces of furniture using wood, metal, glass, leather, plastic, stone, etc. The process begins with the customer’s design specifications. Once the manufacturer has created a prototype, he will send it off to his factory for production. Afterward, the finished product arrives at the client’s location.
Dental Equipment Supplier
Dental equipment suppliers manufacture dental tools such as drills, saw blades, and handpiece. These devices are used during oral surgery procedures. In addition to manufacturing medical instruments, many dentists use them to perform routine maintenance tasks like cleaning teeth.
Starting a distribution business from home is an excellent idea if you have a lot of time on your hands. You can work at home while still earning money. You will need to find a reliable supplier of products and then sell them to customers.
