Starting a Wholesale Distribution Business Checklist

Are you looking to start a wholesale distribution business?

Here are the things to do in starting your wholesale distribution business:

1. Carefully Choose the Right Products for Your Distribution Business

Do you want to distribute food? How about clothing, cosmetics, electronics, books, and other merchandise? Choose which type of products you want for your wholesale distribution business and focus on specializing them.

2. Develop a Business Strategy and Plan for Your Distribution Business

Make a projection of your profit per month for the next year up to the next three years, and create a budget plan for your expenses. This gives you an idea of how much you can earn in a month, your average income, and best case scenarios. Through this, you can plan for new strategies of how to maintain or even increase your sales.

Do some researching and study how your wholesale competitors fair in the market to give you an idea of the competition of wholesalers. You might not know what the new effective strategies other wholesalers are utilizing. You can also innovate other ideas into new and more efficient thoughts.

Strategize your marketing and manage your public relations. Don't just do what others are doing. Create new ways to market your products and pull more buyers on your wholesale distribution business.

3. Comply the Business Permits and Other Requirements to Operate Your Business

Be sure that you are an authorized wholesale distributor to avoid any conflicts in the future. Some retailers are particular about the legalities, so make sure you have complied with everything before operating your business. This will contribute to making sure that when they ask for your business permit, you can easily show them.

4. Buy or Lease a Wholesale Distribution Warehouse Space

It is where you will be storing your wholesale products for distribution, so make sure you get the right space. It is better to have a warehouse that is temperature-controlled in case that you will have products that are potentially sensitive to temperature. Choose one which is the right size to fit all your products, and not too large that so much of the space is not filled, for it is impractical.

5. Ensure That You Get a Discount from the Manufacturers

As a distributor, you are expected to buy products worth hundreds of dollars at once for you to receive each at 60-80 percent off the retail price. If you buy from your manufacturers at a wholesale price (which is usually at 40-60 percent off the retail price) there's no sense of you providing products for wholesale distribution. Since you should be giving a discount to your retailer customers, this only makes sense. So if the retail product is bought by consumers for $50, you should buy that product from your manufacturer for at most $20 each, and sell it to retailers for at around $30. Retailers will then adjust the prices to the standard local prices.

6. Provide Incentives to Your Retailers

​Giving them incentives and other privileges will help you maintain a healthy relationship with your customers. Offer drop shipping to them or offer them discounted prices for shipping. You can also give them discounts for bulk orders.

7. Promote Your Business

Join a network of professionals, advertise on social media, or launch a website for potential customers to find you more quickly and easily.


Prepare for an enough capital and take time for proper planning to effectively start your wholesale distribution business.