Before you can start selling – Consider these steps to take to become a wholesale distributor.
Did you know: In 2019, wholesale and retail trade contributed to 47 billion UAE dirhams to the estimated value of the gross domestic product (GDP) of the emirate of Abu Dhabi. The total estimate GDP of the emirate was 915 billion dirhams! (Source)
As the world progresses towards online consumerism, taking the first step in developing a wholesale business can prove to be beneficial and bring forth a large return on investment for those who know how to sell.
One niche that never ceases is the need for food, especially from brands that create delectable foods that are generally not readily available in the country or your specific emirate. As the world begins to move towards online ordering and fulfillment, this provides a greater need to partner with popular food vendors to become a wholesale distributor.
As you research and learn more of the risk and benefits of becoming a wholesale partner. We have compiled four tips you should consider before agreeing to becoming a food distribution business.
Figure Out Your Niche
One you have general knowledge on how to run a business, it is time to sit down and figure out what product market do you want to distribute and sell in. Food, Apparel, and so on.
You can sell almost anything, but it can be of great benefit to be knowledgeable of the product you are going to be selling.
Ask yourself a few questions to really narrow down the type of foods you want to sell. Consider questions like:
- How to start an online bakery business?
- How much would it cost to purchase baked goods in bulk?
- Which nonperishable food is the easiest to sell throughout the year?
- Which foods have an ideal peak season?
- If I sell Pure Ice Cream products, will I need to utilize a warehouse with a cooler? Will it cost more to purchase storage and add in a cooler?
- Which vendors products do I think would be a great addition to my local marketplace?
- Where can I buy 100% chocolate in bulk?
Map out a business strategy!
One you figured out what product market you wish to work in like, for example, a baked goods wholesale distributor, it is time to sit down and figure out a strategy. Every successful business begins with a thorough and well-considered business plan.
This will help you create a better understanding of your business operations and the core values of your business. You will have to do some research on your product marketplace, potential marketing endeavors, and a projection of where your business will stand in the future.
This research is advantageous as it will help you find all the necessary laws and permits needed to distribute your food of choice without hassle. Consider reaching out to a commercial lawyer as well if you have any legal questions regarding distributing in the UAE.
With all this to consider, drafting a business plan will help you figure out the financial costs it will require before you take the first step in calling a potential vendor.
Create Your Brand and Research Vendors
Before you present yourself to vendors and you have taken care of planning out your strategy, it is time to begin creating your brand.
Consider moving towards utilization of an online presence – technological advances and trends cannot be overlooked. In a world that is now majority digital, it is important to consider purchasing an online domain and creating social media accounts to create a larger brand awareness towards your target audience.
Once you have your brand presence ready, you can reach out to potential vendors and do research on how they operate, the quantity of which they sell products in, and who they supply to.
Several suppliers are ready to make a deal and sell many bulk products to the distributor ready to represent them. Make a call or send an email to ask questions and to learn of the costs of purchasing through that select vendor.
Once you have narrowed down the desired vendors you wish to conduct business with, prepare a warehouse or an area to keep your product stored. If you are selling food and beverages, consider a place that maintains a cool temperature to lessen the risk of damage to the products.
Make A Deal and Start Selling
Now that you have done your research, created your domain, and created a deal with a vendor – it is time to add products to your online inventory and begin selling. It will not be easy at first but if you have properly planned out your business plan and marketing strategy – your first sale should be coming in soon.
Focus on marketing your food products by creating promotional campaigns for specific products or promoting your new inventory on social media.
Remember to also watch the numbers as you are doing so – see where the profits grow and fall based on the marketing strategies you utilize to see what does and does not work.
As we begin to settle into the New Year and the urge to create your own business grows, consider creating a wholesale food distribution business.
Like any business in the beginning stages, be sure you understand the basics of management before you consider moving forward – being educated in management, inventory management, supply-chain knowledge, finance and accounting can influence the success rate of your company.
If you feel you are ready to create something of your own, move forward to create a business plan to show how your ultimate plan will fare in the coming years through your efforts. Research products and its marketplace and reach out to vendors to understand their rates and contracts. Find a place to sell the products and get started on creating your business and becoming your own boss.
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