Become a sole distributor

[Deleted member 149952]

Hi everyone,
Im looking for advise, I run a fairly successful eCommerce business specialising in unusual home and gift items. I have discovered a product/designer from the US, I am the fist person in the UK to stock their items and I have now approached them about becoming their sole UK distributor. This is all very new to me so looking for some advise please from anyone who has experience in this area. i.e contracts, rights, commission, quantities.

Thanks for reading!

Sam

 

[faradaykeynes]

Sole distributor of on-line business? Why would they agree to this and how would you stop UK customers to buy from other online site of same distributor?

 

[Deleted member 149952]

I own an online retail business but Im looking move into wholesale.
I want to supply other trade businesses with this new products both online and on the high street! So becoming a trade seller.

Does that make sense?
Thanks
Sam

 

[faradaykeynes]

Best starting point is read thoroughly their T&C, pay plan and work out how would you configure this for your retailers.
Would you offer drop-ship services too?
Would you market these products directly yourself too through your website to end users? There is one famous drop-ship company who does it.
I suggest hire a solicitor who has experience in drafting contract in this field as hints from forum wont be sufficient.

Important factors to look into are products quality, refunds from customers, end user health and safety liability, you need to have proper T&C with your sub-distributors

If you want to stock in UK which i guess you have to, you would need big warehouse and buy stock, this alone can cost a lot of money and of that you can pick a central location to reach whole of UK.

Last but not least most important is if you are given sole distribution ship then you are fully protected for this right.

 

[Billmccallum]

there is a useful template here http://www.google.co.uk/url?sa=t&rc...vx049e5ospfDE-b6w&sig2=1ORnA9LCdHafWA8SJ-1tEQ

 

[Socio South West]

Remember that in becoming a distributor you will be adding another link in the product chain from where you are now: To be able to sell to dealers as a distributor you need to build margin into your budgets to allow for this.