written by | October 11, 2021

Open Your Own Distribution Business


Every time we visit a Kirana store and find our favourite noodles have filled the shelves; we have the wholesale distribution businesses to thank! Wholesale distribution is the selling of product or merchandise in bulk to the retailer for repackaging and reselling who sells these products to the normal buyers in the market at higher price. The wholesaler procures these goods directly from the factory at even lower price, makes large bundles of them and sells it to retailer. The chain goes-manufacturer-wholesaler-retailer-buyer which is followed in every sector. You may feel that why don’t we acquire these products directly from the factory. It sounds easy but the chain that is constructed by years of trading works perfect in today’s time keeping profit and facilities for everyone in the chain. More than 0.33 million businessmen have found employment in the wholesale distribution business for it profit possibilities. There has been a significant growth in the distribution market from the current 493 billion is projected to grow at a compounded annual growth rate of 6% to reach $865 billion by 2023. It is the best time to invest in this business as there is another platform available now that is e-commerce which has made the dealing and trading easier and have exposed even the small businesses to the whole world. 

Let’s have a look at how you can start a wholesale distribution business and earn that profit:

Create a Plan 

Decide what will be your reach. If you want just an offline store or want to accompany it with an online site? Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and glass crockery shop needs investment and time as you can’t expect that all your products will be sold in a day. There will be days when you sell no glass crockery or on others, you may sell plenty of them. One should always be ready for bad days.

Do your research

To open wholesale distribution business, as attractive as it sounds, is not an easy venture to open. You have to do a lot of research about how the market functions and what is the demand and supply chain in this business. You have to arrange for a You need to have great shopkeeper’s skills and a compassionate personality. You must know how to attract customers to your shop.

Decide on products

There is an array of products that are available in the market and the range is huge! You have to first decide what are the products you want to sell. Wholesale distribution business means you have to sell only few products only because it is hard for manage if you have many products at the same time. Any business will expand and the list can always increase and you can keep more people to manage the business but decide first what is your introductory range and how influential it is for the local public and will it get enough attention.

Storage space

In wholesale distribution business you’ll have a variety of products in huge amount at the same time and for that you’ll need storage space. Depending on the size of the business, get yourself a storage space.

Get the Manpower

Have in-house staff that will carry out tasks like billing, loading, shifting, etc. Once you have a store and you desire to build it bigger, have a trusted group of people who will help you on each level as this is not a task that can be handled alone. Build a team you can trust.

Generate funds

This is amongst the first things to do. You are setting up a whole sale business. It will require a principal investment. Get yourself sponsors who are willing to support a local business and have your back in tough times.

Take Permits and License

To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening any business in India calls for this.

Customer Base

Before you think of setting up any business, you keep in mind your target audience. Set up your advertisements and marketing focused on them and your resources.

Understand your customer

Focus on the needs of your customers. Follow the pattern of what are the products which are demanded by them the most and keep in mind the variety of products they would like to have. Keep the stocks up and the quality of your products intact. Provide them with the service they demand and listen to their queries and concerns. There are many businesses in which people don’t shy away from buying fancy products so go overboard if you are one who wants to sell them, make sure some prospects will be willing to buy them too, or else you’ll never be able to gain profit.

Connect with Factories

Contact factories to procure items for them and be the middle man between them and retailers.
You can connect with local businesses and expand your business. It will help them reach the shops easily and you can earn the profit too.

Go online

Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your wholesale distribution business and set delivery boundaries according to yourself. Arrange your products in different categories and use various models and tools which are available online to make your website catchier and more attractive. 

Marketing on different platforms

Be ready to do a lot of marketing. Social Media is used by almost everyone around the globe. It is almost certain that at least one person in a household must be using any social media platform. Putting up pages on Facebook and Instagram, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your wholesale distribution business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Since you already have an offline business and most customers who have done business with you will keep your number saved, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one to one messaging which has become one of the best provisions of converting prospects to customers.

Starting any business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best!


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