Transcript for Episode 18 - Using an agent or distributor

Using an agent or distributor can be a good way of entering a new market. They both have a wealth of knowledge and experience and know the best way to get maximum sales, locally. Let’s look at the advantages and disadvantages of these routes.

Agents

Agents are individuals or organisations that will sell your product on your behalf. They offer a simple, low-cost introduction to a market.

You'll be able to retain control over pricing and marketing. They don’t hold stock, but instead simply set up the sale, making commission as they go.

You will not necessarily have control over how they sell your product and they may have demands on their time from other suppliers. But an agent will have great local knowledge and the ability to identify new in-market opportunities.

Distributors

Distributors buy your products from you and sell them on. They usually buy in bulk, hold the stock and take care of all logistics. But they may expect big discounts for doing this, and you may lose some control over pricing and marketing.

Like agents they will have a wealth of local market knowledge. But on top of that they provide in-market promotions, after-sales services and take on many of the associated risks within the market.

Fulfilment house

Alternatively, you may wish to consider using a fulfilment house. Fulfilment houses stock and dispatch orders to your customers. However, marketing, sales and after-sales care remain your responsibility.

They can work best when selling overseas through your own website, directly to the end consumer. They may not be as useful if volumes are low or products need to be customised. But they can offer quick delivery times to overseas customers without the need to invest in storage and distribution facilities.

How to find them

There are dedicated sites that list agents and distributors by sector and country. Or you can go directly to the trade association site in your market to find the details you need.