I want to become a food distributor. Distributor of a foreign company in Russia: how to start a business not from scratch. Documentation of cooperation

How to become a distributor - who is he and what does he do + 7 detailed steps + recommendations for cooperation with foreign companies.

The concept of “distribution” is familiar to many, although this branch of activity is relatively new in post-Soviet countries.

But despite this, many are interested in the question how to become a distributor.

In fact, it is not difficult, but before choosing such a profession, you need to familiarize yourself with its features and operating principles.

Who is a distributor?

Before moving on to considering how to become a distributor, it is worth finding out who it is.

The word “distributor” is of English origin (distributor) and translated means distributor, distributor.

Speaking in the language of economics, this is an individual (in the form of an individual entrepreneur) or legal entity (enterprise) that purchases goods at low prices directly from the manufacturer for the purpose of their further sale to buyers, dealers or other sellers.

To put it briefly and simply, a distributor is between the manufacturer and the buyer or sellers.

There are several schemes for the movement of goods:

with one or more dealers

Manufacturing company → Distributor → Dealer → Retailer → End consumer

without dealer

Manufacturing company → Distributor → Retailer → End consumer

direct sales (most often used in network marketing)

Manufacturing company → Distributor → End consumer

As you can see, in the chain of movement of goods from the manufacturer to the final consumer, no matter how long it is, the distributor will be in second place.

He can sell products to dealers, or he can immediately provide them to customers.

The main difference between a distributor and other intermediaries is that he is the official representative of the manufacturer and has the exclusive right to distribute products in a certain territory.

At the same time, a contract is concluded between them, which will describe the terms of cooperation, including the pricing policy.

The distributor's income, in turn, is a discount provided by the manufacturing company.

What types of distributors are there:

• general - has the fundamental right to distribute the goods on his own;
• exclusive - has the sole right to distribute the product in a certain territory. Most often, such distributors form a network of official dealers and sell goods through it.

One manufacturer may have several distributors, and those, in turn, may be representatives of several companies.

What is the difference between a distributor and a dealer?

The main differences between them are not stated anywhere in law, because the terms of their cooperation will be specified in contracts.

But generally speaking, the distributor sells goods only in wholesale quantities, and the dealer most often works for small wholesale and retail.

How to become a distributor and what does it do?

• expansion and expansion of the sales network;
• constant monitoring of the sales market;
• promotion, with whom he collaborates;
• searching for new dealers and retailers;
• conducting an analysis of demand for goods in your region;
• providing marketing services to dealers;
• when purchasing electronic or household appliances and equipment, installation, configuration and warranty service.

Step-by-step instructions on how to become a distributor

So, if you are interested in how to become a distributor, then you should know that an agreement will be concluded between you and the manufacturer, which is called a “distribution agreement.”

It will state:

• rights and obligations of both parties;
• conditions for the purchase and sale of goods;
• pricing policy.

Sometimes the manufacturer requires that the future distributor undergo a probationary period.

During this time, he can demonstrate his professionalism in the field of sales.

If everything goes well, then the distributor receives a certificate from an official or exclusive representative of the company.

Now let's move on to step-by-step instructions on how to become a distributor:

Choose the direction in which you want to work.

This could include food, household goods, household or electronic appliances, cars and much more.

To do this, analyze the market; perhaps some niches are not yet occupied, but there is a demand for them.

Also consider new companies that are not yet present in your area.

To do this, visit thematic forums and post advertisements.

Passive search for buyers can be done by creating your own website.

Perhaps potential clients will find you on their own.

Travel independently around the region in search of sales points.

To do this, you need to take samples with you and travel around your region with offers of cooperation.

It is important to be able to use your communication skills here.

Create a marketing and sales department.


If you are not ready to work alone, then hire several good marketers and sales people who will have a client base in their track record.

1. For these purposes, you can use the Internet (social networks, thematic sites), outdoor advertising, and advertisements in local print media.

   You will learn from the video what mistakes distributors often make in their activities:

   If you are looking for an answer to the question: “ How to become a distributor?”, then decide for yourself how much time you are willing to devote to such activities.

   Your income will directly depend on your desire to work.

   If you are a student or a young mother, you can choose network marketing, in which case you will only spend half your working day.

   And when collaborating with large manufacturers who produce expensive products, you can have millions in turnover at your disposal.

   Therefore, choose a direction according to your capabilities and get to work.

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Each of us has heard the word “distributor” many times, but not everyone has had to think about how to become a distributor. We are all looking for ourselves in this life, and the profession of a distributor presupposes freedom, including financial freedom.

A distributor is a trading company that purchases products from manufacturers on favorable terms and sells products on regional markets. The distributor company is the second link in the trade chain, it comes immediately after the manufacturer.

How to become an official distributor?

The secret of the distributor's profit lies in the fact that he works with manufacturers on the most favorable terms, receiving privileges and the maximum possible discount on products.

What are the responsibilities of a distributor? He must conduct active sales according to a well-chosen work scheme. The key to success will be energy, enterprise, and the ability to conduct and conclude profitable deals. Here is the main list of distributor responsibilities:

• active search for clients;
• conducting product presentations;
• signing contracts and concluding transactions.

What does it take to become a distributor?

Anyone who has the necessary natural qualities and has a burning desire to earn good money by working for themselves can master this profession. If you wish to become a distributor for a specific company and are already an individual entrepreneur, you must simply submit an application to the manufacturer. Attention, you should choose companies for cooperation carefully! Give preference to the most well-known companies with extensive experience, length of service, and a good reputation. Don’t be lazy to compare the terms of cooperation, calculate the benefits and economic effect, look for pitfalls. Choose the best, this is the only way you can get ahead of your competitors and offer your to potential customers the highest quality products at reasonable prices.

When your application is reviewed, you will receive a response. If the decision is positive, the company’s specialists will contact you and they will clarify all the details of cooperation. Collaboration can be regular or remote. Normal cooperation takes place within one locality or district, and remote cooperation occurs within different regions or when searching for clients through a.

Now you know in more detail about how to become a successful distributor. Work, move forward, learn and act, and then success, luck and financial well-being will definitely become constant companions of your business!

There will always be a buyer for a good product, but what if the buyer is domestic, but the product can only be bought from a foreign manufacturer? Not every potential consumer is ready to go to another country for the product they like, so you can start making money on this desire in Russia. But before becoming a distributor of a foreign company in Russia in 2019, you need to make sure there is stable demand.

Distributor or dealer - work in a chain

Having established contacts with a foreign manufacturer, an enterprising person will need to decide in what capacity he will be ready to work with him. There are two options: dealer and distributor. Unusual to Russian-speaking ears, the words translated mean: merchant and distributor. Despite some similarity of concepts, there are differences between them that determine their functional difference.

Difference in Definitions

Even a superficial knowledge of English will allow you to find translations of foreign concepts that have quickly taken root in our vocabulary since the 90s. And if in the era of the “wild” market no one delved into the details, now the chosen status also determines a set of rights and responsibilities.

Thus, a distributor (general or exclusive) is first of all obliged to organize the distribution of a product or service. This means that a domestic company or individual entrepreneur will be busy forming a network of wholesale or small wholesale distributors, as well as launching an intensive advertising campaign for greater brand recognition.

Contacts with small retail outlets and end consumers are mainly carried out by dealers. It is their responsibilities that include direct direct sales of goods and services.

Difference in rights

If we imagine trade relations in the form of a hierarchical chain, we get a simple sequence: foreign manufacturer - distributor - dealer. Based on the manufacturer’s sales policy, there may be one or several distributors in the country. The number of dealers depends on the intensity of work of the distributor himself. It is clear that commercial success in Russia implies the most developed network of those who work directly with the buyer.

A foreigner can quickly and without hassle open an individual entrepreneur online through the proven service “My Business”. All you have to do is register, enter the necessary data, and the system will give you ready-made documents, which all you have to do is print them out and submit them to the tax office.

Become a supplier: the distributor path

Having chosen a foreign manufacturer whose products, in the opinion of the future seller, will be of interest to the Russian buyer, the main thing is to correctly carry out the presentation work and negotiations. A well-written business plan and forecast data on purchases and sales will help you successfully present your company to foreigners.

Many foreign brands have their own set of requirements for potential partners. They can cover more than just financial indicators about minimum sales volumes.

Among the requirements for a future distributor may be wishes for location, availability of warehouses and industrial premises, equipment, personnel and retail space. The demographic and economic indicators of the region may also play an important role.

In addition, before becoming a dealer of a foreign company in Russia, it will be necessary to prove to the manufacturer that the company is able to establish and further develop a partner network.

Variants of work schemes

The form of cooperation between the manufacturer and the official distributor may have several options. A foreign company can choose a Russian distributor as the only one who has the right to import their goods and sell them on the territory of the Russian Federation. He may be given the broadest and sometimes exclusive rights to develop and expand the sales network. There is a scheme in which a separate distributor is selected for different groups of goods. Division by region is also possible.

Under an agreement with foreign businessmen, the distributor may be obliged to independently organize a network of representative offices and service centers and organize direct sales.

However, most often there are contracts under which the distributor can delegate authority to work with clients to smaller dealers, while he himself will be involved in promoting products and expanding the partner network. With this scheme of work, the distributor will be required not only to intensively search for new markets, but also to provide information support to dealers, organize seminars and representative events.

Documentation of cooperation

After conducting preliminary negotiations and receiving positive reviews of the cooperation proposal, it is time to discuss the draft agreement. According to established practice, a contract with a foreign company stipulates in detail many even small details. Most often it is compiled in two languages ​​(Russian and English).

The main pitfall of such agreements can be considered that in any disputes the text in a foreign language will be taken as the basis. On top of that, lawyers often add a clause on foreign jurisdiction of cases under this document.

A positive aspect of such strictness can be considered a detailed description of all procedures and requirements, a list of information about information support and an appendix to the contract of a list of responsible contact persons.

Work on the basis of a dealer agreement

In addition to obtaining distributor status, a domestic entrepreneur can try to enter into an agreement with a foreign legal entity to work as a dealer. Such cooperation is suitable for those who are ready to work independently in the field of direct sales of imported products, without advertising support and service departments.

This is acceptable in cases where the manufacturer itself already has its own branch in the Russian Federation and is interested in developing a partner network. Most often, a dealership agreement involves work on an advance payment basis. If we are talking about the possibility of paying for a product after its sale and allows the return of illicit goods, then the manufacturer in most cases reserves the right to set maximum prices and return periods.

For an optimal approach to making an informed decision on the form of cooperation, it would be useful to familiarize yourself with information about.

How much working capital will such a business require?

The answer to the question about the costs of promoting products, purchasing several starting and presentation batches of goods, and developing a sales network should be announced at the stage of presenting a business plan and conducting negotiations. A scrupulous approach to preliminary calculation of financial investments is not only useful for ensuring a positive response from a foreign partner, but is also advisable for the potential distributor itself.

The amount of capital investment largely depends on the product being sold, and on the expected distribution area and the extensiveness of the dealer network. It is clear that high-tech gadgets or unique highly specialized equipment cannot be cheap, but the segment of a non-premium clothing brand will be more affordable in terms of material costs and capital turnover rate.

Ways to do business with foreigners without investment

If the preliminary calculation of capital investments before becoming a representative of a foreign company does not correspond to the available savings, draft contracts can be proposed with the distribution of the financial burden between the parties.

To reduce the size of the initial investment, you can try to negotiate a free supply of at least a trial batch of products. Despite the riskiness of such a transaction, the contract can provide for some means of insurance (for example, financial guarantees from a bank or insurance). In addition, this option may become the only opportunity for foreigners to penetrate new markets.

Another way to promote a product without buying it is through an agency agreement. In this case, ownership of the goods does not pass to the distributor; he will receive only the commission specified in the contract.

Typically, the agent's profit is less, but in conditions of a lack of working capital, this option seems optimal.

Pros and cons of working on behalf of a foreign partner

An undeniable advantage of working under the terms of an official representative office is that the distributor is guaranteed support from the manufacturer. In the case of cooperation with a global brand, establishing sales is noticeably easier.

Constraint in decision making may be considered a disadvantage. In the overwhelming majority of cases, the manufacturer rather strictly controls the fulfillment of the image requirements of the contract, insists on increasing the minimum sales volumes, sometimes it comes to applying a system of fines or reducing the amount of remuneration based on the results of the audit sent.

Where to look for foreign suppliers

If an entrepreneur has a desire to expand his business or start one with foreigners, but the choice of a supplier has not yet been made, then you can use several selection methods:

• be guided by your own taste when selecting a product and find contacts of the selected company on the Internet;
• conduct a social survey at least among friends and customers;
• use the services of sites where you can find offers for dealership of foreign companies from all over the world:
• all.biz – international portal of wholesale and retail trade,
• eurolots.com – European site for searching suppliers,
• aliexpress.com is a site offering products from Chinese companies.

Foreign counterparty - trust, but verify

The possibility of stumbling upon an unscrupulous partner outside one’s native country, unfortunately, is not reduced to zero simply by the very fact of foreign origin. To preserve their own nervous system, a domestic businessman should conduct a check in advance, albeit at the level of general capabilities:

• Check the availability of a serious website and your own domain name.
• Evaluate the approach to negotiations and the draft agreement.
• Take advantage of the capabilities of the World Wide Web and a number of special sites:
  • www.ved.gov.ru - government portal of foreign economic information,
  • creditreform.com is a foreign site offering services for checking potential partners, has representative offices in many countries around the world,
  • europages.com.ru – “yellow pages” of European manufacturing and trading companies.

With the development of the Internet and remote methods of transmitting information, it has become easier for a modern businessman to develop his business. Freedom of communication helps entrepreneurs expand the list of suppliers, and not only brings consumers closer to global brands, but also gives them the opportunity to try lesser-known brands.

How a foreign company can open a representative office or create a branch in Russia: Video

Let's start with what a distributor is. Translated, this means “distribution”. In reality, a distributor is a legal entity engaged in the sale of consumer goods, which are acquired through purchase and sale and a special agreement for any period at its own expense and with further sale of the goods. Sales can be anything: wholesale, online, retail, etc. But in any case, the pricing policy is carried out or based on the recommendations of the product manufacturer.

To understand how well a particular distributor is performing, indicators such as product sales volume and distribution level (both in quality and quantity) in the territory entrusted to the distributor are checked. The distributor begins his work as soon as the purchase of a product is completed for its further resale. Distributors can distribute goods in a certain territory themselves, or hire intermediaries or their own agents for this.

To become a distributor, you must first find the manufacturer of the product. As soon as you find a suitable company, draw up a commercial proposal for cooperation with them. What needs to be included in this proposal:

1. Important information about your company or business (as you remember, only a legal entity can be a distributor);

2. Scope of activity and territorial distribution;

3. The company’s turnover, its mobility;

4. Clientele (it is very important to indicate and tell in detail about your clients in order to attract interest to yourself).

In addition to such a proposal, it is necessary to prepare an overview of the market you are interested in, study its intricacies, collect sales volumes of goods, work out territorial patterns, etc. If, for example, you do not want to work in a specific region of the city, but want to become a regional representative (a remote city), then you will interest the product manufacturer with your knowledge about the region and the demand for the product in it.

Always inquire about the product from the manufacturer, even if you have already found out everything yourself. Ask as much as possible, but on the topic, show your interest. Questions may concern both the product and its quality, delivery and supply, advertising, logistics, competitiveness, loyal conditions and offers. Next comes the most important thing in how to become a distributor: organizing the initial contact of the product with the clientele. The easiest way to do this is to take part in an exhibition of a similar product. This way you can learn about competitors, show off your product and find customers. Let's say you have already established the necessary contact, which means it is time for negotiations leading to a distribution agreement. The main thing at this moment is not to spoil the connection between you, but to establish contact to an ideal state.

Distribution in the modern world

Thus, by concluding an agreement with the manufacturer, you become the official distributor of the product and receive a certificate of conformity. A distributor can be general or exclusive. You can work according to two schemes. The first is purchasing a product from the manufacturer with a distributor discount and receiving free samples of the product. The second scheme of work is represented by the establishment of a new enterprise, which becomes a subsidiary of the manufacturer. Another popular option today is the share participation of the distributor.

Even though you have free product samples, this is not enough to get started. You will need to purchase the first batch of goods from the manufacturer. This is what you need to offer to your clients. So, if you want to become a distributor, you need to have initial capital, at least for the purchase of goods.

Why is distributorship so popular in modern society? The fact is that this work does not take much time; it can be only part of your income, additional income or main one. Recently, girls and women involved in the sale of cosmetics are increasingly becoming distributors, which benefits other women and brings pleasure to the workers themselves. A distributor's income depends directly on sales, and sales, accordingly, depend on how much time you devote to work.

First, you should understand why you need to distribute a foreign brand. Everyone thinks it's easy and simple. They rely on the success of Unilever and Procter & Gamble, not realizing that distribution is a big responsibility.

You need to realize that you will make money in distribution only in the long term, when you learn to negotiate with suppliers and form a customer base. You need to devote all your time to this. This cannot be regarded as an additional business.

Try the product

When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. Better yet, don’t skimp and spend 100-200 thousand rubles: get a visa to the country where the product is produced and go to the exhibition. Consider different brands, try it for yourself, talk to company representatives. We fly to such exhibitions every year.

Ask the right questions

When choosing a supplier company, I always pay attention to the quality of packaging. People are greeted by their clothes, so I always ask myself two test questions: “Do I want to use this myself?” Second: “Won’t I be ashamed to give this to a loved one?” If both tests are passed successfully, then the product can be considered. But it is important to remember that good packaging does not always mean good quality.

Next, you should talk to the sellers, because when collaborating, you will communicate with them or with managers. If they are friendly and open, that's a plus. You can only evaluate the quality of products through personal examination; I test men’s cosmetics myself.

I bring product testers to Russia and consult with specialists. In our case, I distribute cosmetics testers to barbers with whom we cooperate. They all have a great understanding of the product and trends, and give good advice.

Choose a brand

Sometimes it is better to choose a product that is still unknown in Russia. It will be easier to enter the market with him. Customers are tired of tired and bored brands, and people are looking for analogues. At the same time, a brand with a big name most likely already has distributors in the Russian Federation, and if not, then its conditions will not be the most optimal.

How much to invest?

To become a distributor, for example, of an English brand, you will have to invest at least 2-3 thousand pounds £ (170-270 thousand rubles). This will be enough to purchase the first batch of goods. This way you can sell it quickly and test the market. Next you need to understand whether the product is in demand and continue the business.

Proper shopping

You have two options for the development of events. The first is to try to invest about 4-5 million rubles in further purchases, depending on the scope of sales and the cost of a unit of production. You buy, bring and resell.

The second option is to negotiate with the supplier for deferment or implementation. It is possible to reach an agreement with a foreign supplier, even if the company does not yet have a recognizable name. But this can only be done with a personal visit to the supplier’s company. If you speak good English, have diplomatic skills and are close to European culture, this will not be difficult for you.

A lot depends on you here. It depends on how you understand the market, the product, how confident you are in yourself and your capabilities. All this is important when you negotiate with a supplier in person. I know cases where almost identical companies agreed on completely different terms with the supplier for an exclusive product.

One company received the product without paying anything and received a line of credit for the product for £30 thousand (2.7 million rubles), and the second itself paid the manufacturer 9-10 million rubles to get the exclusive.

How to negotiate profitably

A company that has its own actual production will offer you much more favorable conditions for deferments, sales and payments. If a company does not produce goods itself, but orders from other factories, then it most likely will not agree to such conditions.

At the same time, listen carefully to the supplier. If they tell you that exporting is not their main task now, but that the main goal is the development of the local market, you should not be under any illusions and fight against a closed door. Look for another supplier.

Clear goods through customs

The most difficult thing is to bring the goods to Russia. Here it is better to use the terms of a broker (a specialist in clearing cargo and goods at customs). He himself will check the documents, control the nomenclatures, and draw up declarations.

At the same time, when clearing products through customs, you are obliged to immediately pay customs duty on all goods and VAT on all imported products. You also pay for delivery and storage services.

Many companies are trying to save on customs and taxes, trying to somehow circumvent these issues. My recommendation - don't! Under no circumstances should you play with the state and taxes. Better form the right price, optimize your business processes and management structure. But you can't escape taxes. The legislative “correctness” of a business is its foundation on which you can calmly build your business further.

In general, there is no need to be afraid of difficulties. You shouldn't go into business if you like to complain. But if you are a stupid optimist, everything will work out.