How to Sell to Distributors: 9 Steps for Success in 2025
If you're a product-based brand ready to grow, you’ve probably wondering how you can get your products into retail stores. One of the ways to get into retail stores is by working with distributors, especially for larger retailers that do not support direct wholesale relationships.
Working with distributors is a powerful way to scale your business. It puts your products in the hands of experts who already have relationships with retailers, handle logistics and can expand your reach without you having to manage every single store account.
This guide breaks it all down into nine clear steps to help you get started and growing your brand with confidence.
Step 1: Know If You're Retail-Ready
Distributors are looking for retail-ready brands. This means your product should have strong shelf appeal and consistent manufacturing quality. You should have proper labelling with barcodes and UPCs. If you are selling to grocery or specialty stores, you should sell your wholesale products in cases of 6s or 12s.
You should have a clear sense of target customer persona by testing the market via online sales, farmers markets or by selling wholesale. You’ll need to be able to meet large purchase orders and fulfill them on time.
Lastly, you should have in place wholesale pricing, a sell sheet and a system for managing logistics and inventory. If you’re still manually packing orders in your garage, it might be time to find a solution to upgrade your operations so you are prepared to scale.
Step 2: Choose the Right Distribution Strategy
There are four main types of product distribution strategies.
Intensive distribution means getting your product into as many stores as possible.
Selective distribution focuses on choosing specific retailers that align with your brand.
Exclusive distribution means partnering with just one retailer in a given territory to maintain prestige.
Direct store distribution (DSD) skips the middleman and sells straight to retailers.
Your choice depends on your brand’s resources, goals, production capacity and category. For example, a high-end boutique apparel brand might opt for exclusive or selective distribution while a mass-market energy drink brand may lean toward an intensive strategy.
Step 3: Create a Wholesale Sell Sheet That Sells
A sell sheet is a must-have tool. It’s a clean one-pager that outlines your product catalog in a way that makes it easy for buyers to make decisions.
It should include high-quality images, SKU numbers, case pack information, MSRP, minimum order quantities (MOQ) and lead times. You should not include your wholesale pricing so it allows you to negotiate with the wholesale buyer.
Keep the design clean and on-brand. Use clear fonts, consistent formatting and enough white space to make it easy to skim.
Step 4: Nail Your Wholesale Pricing Strategy
Pricing is where many small businesses stumble. You need to account for distributor margins and retailer markups without killing your profit margin. Distributors typically take between 25-35% of the wholesale price. Retailers then add their own markup, often 40-60% depending on the category.
Let’s break it down. Say your cost of goods sold (COGS) is $3. You might set a distributor wholesale price of $6. The distributor buys at $6 and marks it up to $7.80. The retailer buys at $7.80 and sells at the suggested retail price of $12.99.
This structure ensures that everyone along the supply chain makes a profit. Make sure that your retail price remains competitive in your category. If not, you must find a way to bring down your COGS as soon as possible or you might risk having slow sales, which will hurt your relationships with wholesale buyers.
Click here to access our retail gross margin calculator template.
Step 5: Understand the Hidden Costs of Working With Large Distributors
Working with major distributors like UNFI and KeHE can unlock huge opportunities but they also come with strict requirements and hidden costs that can catch small business owners off guard.
Chargebacks. These are fees you’ll incur for anything from late deliveries to improper labeling, incorrect case pack sizes or missing documentation. A single chargeback can wipe out the profit from an entire order. These fees are not always clearly outlined upfront so it's critical to ask about them early and read your vendor agreement carefully.
Marketing and onboarding fees. Large distributors often require you to pay for placement in their digital catalogs, monthly promotional programs or printed circulars. These costs can range from a few hundred to several thousand dollars depending on the visibility and tier you choose.
Strict compliance standards. Distributors have detailed guidelines for everything from pallet configuration to delivery windows. Missing even one spec can result in delays or penalties. Before signing on, make sure you have a third-party logistics partner (3PL) or warehouse team that understands distributor requirements inside and out.
Slow payment cycles. While some distributors pay net 30, others may push to net 90 or longer. That will strain your cash flow, especially if you're fronting costs for large orders or ongoing production.
To succeed with large distributors, treat them like enterprise accounts. Assign someone on your team to manage the relationship, track compliance and resolve issues quickly. Brands that stay organized and proactive will build a successful wholesale business.
Step 6: Make It Easy for Distributors to Say Yes
To win over distributors, you need to reduce friction. That means being organized, professional and prepared. Have your minimum order quantities (MOQ) clearly defined and be ready to offer tiered pricing for larger orders. Provide samples and high-quality marketing collateral like product photos, sell sheets and testimonials.
For small businesses, distributors will typically work you after you have 50+ existing retail wholesale customers. For larger distributors, you can be recommended by an "anchor account". For example, a large customer, like Wholefoods, that is willing to vouch for you.
It also helps to provide a promotional calendar showing when you’ll run sales or offer co-branded marketing support. Distributors love working with brands that help drive demand and move product off shelves.
Step 7: Reach Out and Connect with Distributors
Finding the right distributor is part research and part hustle. You can connect with distributors at trade shows, through industry directories and LinkedIn, or by asking for referrals from retailers you already work with.
Your pitch should be short, sharp and personalized. Introduce yourself, describe your product in a single sentence and highlight a few key selling points like awards, sales numbers or press mentions.
Then make a clear ask like “Can I send you samples?” or “Would love to set up a quick call.” Distributors get tons of emails so keep it concise and easy to read.
Step 8: Close the Deal Like a Pro
Once you’ve caught a distributor’s attention, you’ll need to prove that you’re reliable and retail-savvy. They want to know that you can fulfill orders consistently and that you’re prepared to support their retailers with marketing and customer service.
Avoid common red flags like inconsistent packaging or vague answers about fulfillment timelines. Be transparent, confident and clear about what makes your product a great fit for their portfolio.
Step 9: Build a Long-Term Relationship
Getting into distribution is just the beginning. To keep wholesale relationships strong, you’ll need to continuously show up. That means constantly onboarding new retail doors, providing regular updates on new products, running promotions and checking in on sell-through performance.
Be proactive with customer support and always deliver on time. Distributors notice brands that are easy to work with and actively invested in retail success.
Bonus: Selling Direct to Retailers is Still an Option
If you’re not quite ready to work with distributors, you can still grow your wholesale business by selling directly to retailers. Platforms like Faire and RepRally let you list your products online where retailers can discover and order them. You can also reach out to stores individually with your sell sheet and samples.
This approach is great for building proof of concept, learning what sells and collecting valuable feedback before pitching to larger distributors.
Let’s Make This Your Year to Scale
Distribution might sound intimidating but with the right prep, clear pricing and a professional pitch, you’ll be ready to win over distributors and get your products into stores across the country.
If you’re ready to take your wholesale game to the next level or have questions about anything how to manage your wholesale orders, just drop us a message.
FAQ
1. What does selling to distributors mean?
It means you’re partnering with a middleman who buys your wholesale products, then resells them to retailers. Distributors handle logistics, storage and order fulfillment, making it easier for you to scale your brand without managing every retail relationship directly.
2. How do I sell my products to a distributor?
To sell your products to a distributor, you need to be retail-ready with strong branding, proper packaging and reliable fulfillment. Create a professional sell sheet, research distributors who serve your target market and send a short, personalized pitch with product samples. Be ready to negotiate terms and support retail sell-through with marketing.
3. What percentage do distributors take?
Distributors typically take a margin of 25 to 35 percent off your wholesale price. After that, retailers add their own markup, which is usually 40 to 60 percent depending on the category. Your pricing strategy needs to account for these margins while still keeping your product competitive on shelf.
4. How do I get my product to a distributor?
To get your product to a distributor, start by identifying ones that specialize in your category. Reach out with a clear pitch and provide samples, marketing materials and wholesale information. You’ll also need a logistics solution in place, like a 3PL, to meet shipping and compliance requirements, especially for larger distributors like UNFI or KeHE.
5. What are the four types of distribution strategies?
The four main types of product distribution strategies are:
Intensive distribution: Selling in as many stores as possible
Selective distribution: Selling in a curated set of retailers aligned with your brand
Exclusive distribution: Selling through one retailer per region or category
Direct store distribution (DSD): Selling directly to retailers without a distributor
The right strategy depends on your product, category and capacity to fulfill.
