Frequently asked questions

A distributor is a business that buys goods in bulk from a manufacturer or brand, stores them, and supplies them to retailers, wholesalers and other businesses in a defined territory. Besides moving stock, a distributor usually delivers to shops, extends credit to retailers and collects payments — giving the brand local reach it could not easily build on its own.

A distributor buys from the manufacturer and supplies other businesses — retailers, dealers and wholesalers — across a territory. A dealer usually sells to the end customer, often for one brand, like a car or two-wheeler dealer. In short, a distributor sells to businesses in bulk; a dealer sells to the final buyer. In India the two words are often used loosely, so the agreement between the brand and the partner is what defines the role.

Mainly from the margin — the difference between the price they buy at and the price they sell to retailers. On top of that, brands often pay schemes, volume incentives and target-linked bonuses. Margins vary by category: lower for fast-moving goods that sell in high volumes, higher for products that need more selling effort. What a distributor actually keeps depends on volume, the credit cycle and running costs such as warehouse, delivery and staff.

Choose a category you understand and can fund. Register your business with GST, plus any licence the category needs — for example a drug licence for medicines or FSSAI for food. Arrange storage, delivery and working capital for stock and retailer credit. Then approach brands looking for distributors in your area. On the Vitrak app you can sign up free with your mobile number, browse brands by category and region, and send an enquiry to brands recruiting in your area.

Traditionally through trade fairs, referrals, field sales teams, trade associations and "distributor wanted" advertisements. Increasingly they also use B2B platforms, where dealers and distributors search by category and region and send enquiries directly. On Vitrak, a manufacturer's listing is visible to distributors across India, distributors in the regions it recruits in can send enquiries, and every enquiry lands in one lead inbox.

List your brand on a B2B distribution platform, set the categories and regions you want to grow in, and publish clear product details and terms. Respond to enquiries quickly, and verify each distributor — GST, references and a visit — before appointing. On Vitrak, distributors across India can find your listing, and those in your target regions can send an enquiry or call you over a masked number.

First define your territory and the kind of distributor you need: the categories they carry, the retailers they reach, their warehouse and their financial strength. Then use several routes together — trade associations, trade fairs, the suppliers your retailers already buy from, and online platforms. Vitrak brings distributors onto one platform, so a single listing puts your brand in front of them.

Grow one region at a time. Appoint a distributor for each territory with clear targets, support them with schemes, marketing material and sales help, and track their sales to retailers, not just their orders from you. When you are ready for a new region, add it to your target regions on Vitrak so distributors there can contact you — without a sales trip.

Give distributors a product mix and margin worth pushing, keep stock available, and settle their claims on time. Agree retailer coverage and beat plans, run schemes that move stock to shops, and track sales data regularly. It also helps to keep every distributor enquiry in one place — Vitrak's paid plans include a lead manager to assign, track and follow up each one.

It is the plan for how your products travel from the factory to the buyer: how many levels there are (for example company, super stockist, distributor, retailer), how many distributors you appoint and where, what each level earns, and how much of the market you want to cover. Some brands want their product everywhere; others choose a few selective or exclusive partners per region.

A typical process: define the territory and your criteria; shortlist candidates; evaluate their finances, infrastructure, retailer reach and category experience; verify documents such as GST, PAN, licences and bank details, and take references; agree margin, credit, territory, targets and returns in a written agreement; and finally onboard them with a first order and training.

Find candidates, check them, and put the terms in writing. On Vitrak, you list your brand and target regions, receive enquiries from interested distributors, shortlist them, and talk over masked calls. Verification and the distribution agreement are then completed directly between your company and the distributor you choose.