10/ 06/ 2004
by Jeffrey Moses
When exporting products to a foreign country or geographic region, it’s not necessary to set up a branch office. An economical way to enter a market is simply to find a distributor who can help coordinate sales. Clearly, not all distributors will do a top-quality job. The following tips can help you locate a reliable individual or distribution group that will contribute to your success.
The qualities of a distributor that would make a good fit with you and your product line(s) include:
- Proven track record in similar lines
- Established distribution networks
- Strong financial history indicating solvency and long-term reliability
- Ability to extend credit to customers
- Ability to invest in your activities by providing storage, sales staff and local facilities to show products
- Knowledge of applicable tariffs and taxes
- A mix of product lines that complements your offerings
- No conflicts of interest with competing products
There are a number of effective ways to locate a good distributor. When possible, visit the country and meet with various groups, asking for referrals to reputable distributors. While in the country, seek advice from local merchant associations; non-competing foreign and domestic manufacturers that use distributors; large companies or organizations that would be likely to sell your products; U.S. embassies, which may provide lists of local contacts; trade organizations or Chambers of Commerce in large cities within the country; and, of course, your own friends, relatives and business associates.
While in the country, collect names of a number of potential distributors. After checking references, meet with them and describe your products and goals. Select the distributor that best fits your plans, based on the above criteria.
If you are not able to visit the country, your search will need to be done from the U.S. Good sources for finding reputable distributors include:
- International Trade Shows
- Foreign consulates in the U.S., many of which can provide extensive lists of distributors within their countries
- The U.S. Department of Commerce, which provides matchmaking programs, and the American Traders Index, which allows you to put your name on a list so that distributors can contact you
- The U.S. Small Business Administration, which has Export Small Business Development Centers in various regions of the U.S.
- State and city government agencies dedicated to helping local residents begin international exporting
- State and private business college libraries, which are likely to carry International Trade Guides of various types
Online resources for finding distributors include:
1. The International Trade Administration of the U.S. Department of Commerce, which describes itself as “the first stop for information about all U.S. Federal government export assistance.”
2. Export.gov, which provides:
- World-class market research
- Trade events that promote your product or service to qualified buyers
- Introductions to qualified buyers and distributors
- Counseling through every step of the export process
3. State Web sites that provide exporting information, such as California’s site, www.tradeport.org.
4. The Small Business Administration’s Office of International Trade Web site.
