Start distribution agency

In this article, we explain all the details to start a distribution agency. Distribution agency is the best opportunity to establish a big business enterprise with low fixed or initial capital.

However it needs desirable amount of working capital. In this article, we have included top ten categories of distribution agencies in the market. You can start a distribution agency easily by choosing any product from various categories.

There are some necessary licenses to start and operate a distribution agency in all countries. It is mandatory to register and acquire licenses for all agencies. In India, the essential to take license from any local bodies like Panchayath and it is also necessary to register in GST Network.

How to start distribution agency

Now we can analyze the basic infrastructure facilities for how to start a distribution agency. It is essential to have a Warehouse to stock products. The area of godown is depends on type and nature of the product which you wants to stock.

It is not necessary to locate godown in town areas. In these types of operations we have to meet and approach customers by visiting them from their location. So, no need to locate our warehouse in towns where the customers have easy accessibility.

Office set up

But we need an office for our operation and it is better to locate in town areas. If it is located in town areas, customers can easily meet us and it will be more comfortable to conduct meeting of vendors and other related operations.

Other necessary facilities to run this agency are transportation facilities, water and necessary licenses. In the case of license, as we mentioned above, it is enough to have Panchayath license and GST registration for this operation. In addition to these it is very important to have goods carrier vehicle to supply products.

Important thinks for start up distribution agency

In this section we are discussing the important issues which we have to focus when we plan to start this kind of unit.

The first and most important issue is the selection of products. Before you choosing the products to distribute, you have to make a detailed study on its market potential and demand.

The most demanded and popularized ten categories of products have discussed in this article. The second issue is related with volume of sales. As we know, the agencies can maximize profit only when it maximizing its sales volume.

For this purpose, you have to arrange adequate amount of working capital. Because, you can purchase products form manufactures at possible minimum price when you are paying its full payment or advance. And it is also important to meet and assure the quality of products always. You should be perfect and vigilant in clearing all the necessary papers and licenses from the side of government before you starting the operation.

Top 10 product for start distribution agency

We discus here Top 10 product for start distribution agency. You can choose any of the 10 following categories of best opportunities to establish a distribution agency. All these categories of products have high market demand and business scope.

1 – Electrical and plumping materials

The first item among this category is electrical and plumbing materials for distribution agency. You can either specialize your distribution only in these products with different brands or you can also distribute some other items of products with this category. The main sub categories of this item are electrical and plumbing fittings, motor and accessories, pipe items, LED lights etc..

2 – Food products or food items

Secondly we can consider the scope of food products or food items for distribution . We have number of sub categories in this item. We can distribute products which covered in packs and some products can be distributed in preferred quantities without packaging. The important items in this category are rice flour to make “Puttu” and “Pathiri”, wheat flour to make “Chapati”, different kinds of oils like sun flower oil, coconut oils, vegetable oils and other cooking oils.

You can also include repacking products like fenugreek seeds and mustard seed in this category. In this category also either you can specialize in one or two items or you can distribute many products jointly. In this case, you can establish an outlet as a distribution agency in any town areas. If it is located in towns, retail shops can easily approach you to purchase products and you can also directly supply the products to other retailers.

3 – Medical equipments

Thirdly we can analyze the opportunities of medical equipments for distribution agency. In this category, you may have various sub categories like lab equipments, bed and wheel chairs, machines to check pressure, sugar etc.. All these items can be supplied through hospitals and medical stores.

4 – spare parts for distribution agency

Now we can consider about spare parts for distribution agency. Among this, mainly we have two types of spare parts. Vehicles spare parts and spare parts for machineries. Within these we have many sub categories also. It includes spare parts for alteration and beautification of vehicles, engine spare parts, oils, grease etc.

5 – dress materials and clothes for distribution agency

Another best opportunity for establishing distribution agency is supply of dress materials and clothes. Basically, it can be divided in to three sub categories like kids, gents and ladies. Within kids also we can again divided this as dress for new born children and other kids. In dress distribution agencies, you can also specialize and supply inner wears, leggings and jeggings as your own unique brands.

6 – electronic items

Another important category is electronic items. Among these we have both big products with high price and small products. Big categories of products include refrigerator, TV, washing machine and ACs. But we should have huge working capital and investment to supply these kinds of products especially to supply is as our own brand. Among small category of products we have MP3 sets, torch, bulbs and tubes, LED lights, easy cooks, emergency lambs etc.. It needs only comparably less amount of working capital and investment.

7 – fertilizers and food products for animals

Other important category of item is fertilizers and food products for animals. Among this we have different kind food products for domestic animals like cow, goat, dog etc and food for fishes and birds. In fertilizers also we can establish the agency for both organic fertilizers and chemical fertilizers.

8 – equipment for fitness and body building

We can also supply the equipment for fitness and body building. It can be distributed to both gyms and households to work out from homes. Among this also we have many categories. But it is better to specialize any one category of item for its easy operation without making huge investment.

9 – Cosmetics items

Cosmetics items is another important opportunity. As we all know, in this modern period people are giving immense importance for beauty and all are highly conscious in face beauty. There are lots of items in this category. You can supply any of one or two products or you can supply many number of products in market through your distribution agency. For this category also it is better to locate your agency and godowns in towns. Because, these kinds of products are possible to distributes to costumers directly. In this category e may have face creams, hair creams and hair oils. We can also include and supply some related equipment’s to apply all these creams in our agency.

10 – sports items and accessories

Lastly, we can consider the possibilities of sports items and accessories. As we know many of sports items can be supplied in market like jerseys, boots, shorts, balls, cricket and tennis bats etc.

When you are establishing these kinds of distribution agencies, it is very important to purchase products from manufactures directly in bulk quantities for the maximization of sales volume and profit margin. All the details given in this article is purely based on our market study and observations. If you are interested to establish a business unit in manufacturing and distribution field, you can found best opportunities through the link given below