Your eCommerce website is up and running. You’ve made your new products even better. Your shelves are full. Now you have to figure out how to deliver your products to the customers. Distribution isn’t always as easy as it seems to run an eCommerce business. When a small business is just getting started, it usually relies on self-fulfilment and self-distributes its products. It’s not a good idea, and profitable online businesses rapidly outgrow it. So, you need to find a reliable distribution partner for your business. Although it may seem scary, the right partner can help you sell more products, make more money, cut costs, and free up more time. Distribution partners also help your online business enter new channels and markets as it grows. Our distribution partner guide will help you understand the functionality and purpose of distribution and its channels to get more business and profits. Let us begin!
Distribution Partner: A Brief
A distribution channel or partner is a group or person to that a business gives permission to market, sell, and distribute products. Generally, it works with a seller to get their products marketed to customers and into the market.
When to Choose a Distribution Partner?
For businesses that aren’t very big, it might not make sense to outsource distribution and fulfilment to a third party for their growth. But as the business grows, new problems start to arise that need help from someone else. A distribution partner is often well-equipped to deal with these critical points in the process. Here are some signs that indicate it might be time to think about a distribution partnership.
1. International Shipments or Business Expansion
International shipping is a complicated process that small businesses need to think about. Tariffs, customs, import duties, regulatory requirements, and restrictions are just some factors to consider. In both cases, the taxes and extra fees make international shipping more expensive for everyone. Distribution partners know how difficult it is to move products worldwide, and they help sellers figure out how to get quick and cheap international shipping.
2. Tired of Prolonged Shipping
Most people who buy products online today expect them to be delivered quickly. Some customers might be able to wait some extra days. Still, if an order takes a week or more to arrive, they are likely to be dissatisfied, even if they are rest assured of a fast turnaround time. People have a terrible customer experience when they excessively wait to get their orders. Quick shipping is a must to keep customers loyal to a business or brand, make more sales, reduce cart abandonment rates, and increase conversions. Partnerships with distributors help small businesses reach fast shipping goals quickly at a low price. It speeds up order fulfilment and also lowers shipping costs. Distributors are logistics experts, and they use different methods to make your supply chain run more smoothly.
3. Need for Trusted Supply Chain Logistics
When you’re self-distributing and self-fulfilling, it’s elementary to make mistakes. But even a tiny mistake can cause your supply chain to a halt and make it infeasible to get your product to end-users. Distributor partners know how to improve a supply chain and use SOPs, automation, and technology to fix big problems.
Things to Consider Before Choosing the Distribution Partner for Your Business
If you choose the right distribution channel or partner, your business can grow, become more efficient, and reach new customers. A good distribution partner can help any business grow. Here are some factors you must look for in the next partner.
1. Fulfilment Reach
Distribution partners should be able to cost-effectively and quickly ship across the country and even worldwide for your company if you need them to. They should also be able to fulfil your orders from multiple countries. Your brand’s distributor should have a vast network of fulfilment centres where product orders can be picked, processed, packed, and ready to be shipped.
As a rule, many businesses don’t have access to the needed infrastructure for efficient fulfilment and distribution. On the other hand, a distribution partner will have the resources in place. It will also have extra equipment, tools, and capabilities to help the sellers get their products out in the best way possible.
When you choose a distributor, make sure that they can keep their end of the bargain regarding distribution and delivery promises. It will make it easier for your company to keep customers happy and make money. Look for a partner with a high order precision rate, a short fulfilment time, and a good record for 2-day or express delivery, and reliable technology to keep the supply chain running smoothly.
In general, an online seller should work with a distributor about the same size as the business itself, near the markets it serves. But the sellers should also look for a distributor that can grow with them as their business grows. It’s essential to find a distribution partner for your business. They can help your company grow into new locations, channels, and markets. Distributors can help you find new ways to expand.
3PLs Can do the Work for You!
eCommerce sellers or businesses should think carefully before choosing a distribution partner. They should not choose a direction just because it’s the most convenient way or the industry standard for their business to go. Suppose you think about why you decided at the start. In that case, you might find hidden benefits, new ways, or hidden drawbacks to reach customers in an innovative and budget-friendly way. As your brand grows, the omnichannel capabilities of NimbusPost let you expand into new distribution channels without sacrificing quality or simplicity. You get the distribution help you need for your brand to grow. It helps you get the product inventory out of your premises, your products to the customers, and your brand into new places.