About Polish Product Distribution Opportunities
About distributing for Polish companies and what products are ripe for distribution.
Distributors exist because factories want to be in the business of being factories. They want to spend that time manufacturing. So wholesale distributors are always wanted.
A factory normally cannot be an efficient manufacture and an efficient marketing company at the same time. Management has to focus on something. They prefer to focus on their manufacturing process and let wholesalers serve the general market.
They do marketing in the sense that they work to find wholesale distributors who will submit orders and large enough so that the factories can manufacture with the efficiencies of scale.
By selling to large distributors companies factories become more competitive because with a larger orders the cost per unit goes down.
As a distributor you will find that the factories can be a source of business for you. They are approached by many small companies interested in buying small lots. The factories, as a matter of course, refer this information out to distributors and distributors sell that small amount.
At the same time as a distributor you can have the factory add in the factory website a link to your website. That will get you business as well as an authority link for the search engines.
Distribution is an inventory business. You sell to small businesses that typically submit small orders. There are many small companies who are interested in buying product but they do not have enough turnover to be able to meet even the factory minimums, become distributors themselves, or pay the costs of importing the product.
You work on the economics of scale and resell to them.
Here is a case study of a company that started with a pallet of products and build a major distribution business.
That company, located in a European country, ordered initially a pallet of watering balls. The company sold those watering at the price that they would sell them had they ordered a full truck load. They did not make a profit on that pallet.
They sold in small quantities to small shops. Buy doing that they built customers.
On the next order they ordered several pallets of watering balls.
They hired commission agents who visited the small shops and sold the watering balls on commission.
The company has, as of the writing of this text, built its business to the point where it orders approximately 1 truck load of watering balls per week. These watering balls or sold to small shops all over the country by a now large network of commission agents.
You can do the same thing with most any product.
There are many unemployed people who I interested in work. Your business model is to important enough inventory that you can supply shops at a reasonable price.
Put that inventory it in a warehouse, or to start, a garage, and put people on commission to sell the product to shops and other retailers.
Additionally you can import product and put it in a fulfillment warehouse to be sold on eBay. You will be able to have a very competitive price by reason of buying at the economics of scale. You put it in a fulfillment house and allow the fulfillment house to ship for you.
Additionally with product in a fulfillment house you can sell that product on Amazon. It’s a matter of listing the product with Amazon and letting the fulfillment house ship for you.
By listing the product on Amazon you have an immediate huge sales force.
Additionally, you can put the product in a fulfillment house and set up your own drop shipping program. You can offer the websites around the country the ability to drop ship that product.
So if you ordered something like watering balls, you could put them in a fulfillment house and offer drop shipping of those watering balls for those people who wish to sell them on eBay, or through their web sites, or any other way they want to sell them.
As stated above distribution is an inventory business. You can expect because of the cost of shipping and the minimum inventory that you would want to have on hand, which would be about a pallet load, that your investment would be somewhere between $3,000 and $10,000.
It is a matter of picking the product that you want to distribute laying out your business plan.