Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
Post Reply
Page 1 of 2 1 2 LastLast
    1. Coast2Coast629 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      9
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      How to obtain an exclusive distribution agreement?

      Ok – I’ve got a situation here and don’t quite know how to proceed. I think I’ve found a great brand of clothing to sell in the area that I live in. This brand isn’t currently sold here and I’m pretty sure it would do great – considering all the other types of clothing currently in style.

      Anyways, so I know I need to go to the supplier/manufacturer and talk to them about purchasing some product and then selling it to the individual retailers in the area. However, I’m wondering if I need an exclusive distribution agreement? If so, how do I obtain the exclusive distribution agreement?
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    2. StPaulNative1207 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      21
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #2
      First of all, if you aren’t sure whether or not you need an exclusive distribution agreement, it’s probably because you don’t fully understand what this agreement will do for you. So, let me explain what an exclusive distribution agreement is…then I’ll get to the second question.

      An Exclusive Distribution Agreement is an agreement that both you (the distributor) and the supplier sign. It will give you the exclusive rights to 1) distribute, and 2) sell the supplier’s product in the area specified in the agreement. It will also guarantee that the supplier won’t enlist another distributor in your area to sell the products, nor can the supplier go straight to your customers…the supplier has to go through you.

      Now – given your situation, I think it’s not only smart but essential that you obtain an exclusive distribution agreement before you begin supplying this product to retailers. This agreement is your protection.

      You can obtain an exclusive distribution agreement either with the help of an attorney (strongly recommended) or you can browse the internet and find a fill-in-the-blank exclusive distribution agreement.
      How a New Online Retailer Made Over £3m Sales in 1yr With These Sources

    3. Coast2Coast629 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      9
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #3
      Yes, I agree – it appears that I do need to get this type of distribution agreement. So, why is going through an attorney “strongly recommended” if I can find a form online and save myself a lot of legal fees?

    4. StPaulNative1207 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      21
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #4
      An attorney that specializes in these types of distributor/supplier agreements is going to know exactly what to add to your agreement to make sure you’re protected from all angles. On top of that – you’re going to look much more professional and be taken more seriously by the supplier if you have a real exclusive distributor agreement than if you have done it yourself.

    5. Coast2Coast629 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      9
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #5
      True…so, is there anything I need to actually do before I hire an attorney and get this process started?

    6. SemperFiMarine is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      14
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #6
      There are a few things that you need to do before you begin this process. Keep in mind that anytime you hire an attorney, it’s going to cost you by the hour…so you want to make his job as easy as possible. You need to:

      • Know the ins and outs of the market you’re trying to get into. (Carefully analyze the sales of comparable clothing in your area, know what retailers you want to target, etc…)
      • Come up with reasonable figures – pretty much any legal agreement like this has to have actual figures within it before it will be signed. (The supplier needs to see what’s in it for them)
      • Be prepared to negotiate.

    7. RickyBobby26 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      29
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #7
      K – thought I’d add something here. I’ve researched this topic quite a bit and want to add that not only does the distributor have to mess with all the legalities and expenses of having the exclusive distribution agreement drawn up…but there are other fees that the distributor will be expected to pay as well.

      For example, if the supplier actually agrees to the terms of the agreement and signs it – you (the distributor) will have to pay for insurance to cover any damage the product gets and you have to pay for the right permits and licenses in your area to legally sell the items too.

    8. StPaulNative1207 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      21
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #8
      You also need to have a plan of action for where you’re going to store the products and any import duties that may be involved.

    9. Coast2Coast629 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      9
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #9
      Thanks guys. Has anyone heard of TPA? I don’t know what it is but someone said I need to watch out for their rules too before I proceed.

    10. StPaulNative1207 is offline

      Join Date
      Jun 2010
      Location
      United States
      United States
      Posts
      21
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #10
      TPA stands for the Trade Practices Act. And yes – you need to make sure that your agreement doesn’t break any of their rules or basically it will be “null and void” and you can be penalized.

Sign Up Now

Got something to say? Sign up now and join the discussions.

Post Reply
Page 1 of 2 1 2 LastLast

Tags for this Thread

Similar Threads

  1. Legal agreement for a partnership
    By Learnsfast in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 0
    Last Post: 17 Nov 2010, 09:14 PM
  2. How can I make a website Terms of Service agreement?
    By Latinrose in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 5
    Last Post: 07 Jan 2011, 06:30 AM
  3. What are NAFTA rules - Explanation of North American Free Trade Agreement
    By SunOhio in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 6
    Last Post: 06 May 2011, 02:16 AM
  4. Replies: 1
    Last Post: 04 Jun 2011, 03:22 AM
  5. How To Obtain A Resale License?
    By Bestshipper in forum Safe Trading Advice & Due Diligence Discussion
    Replies: 16
    Last Post: 14 Sep 2010, 06:51 AM
  6. How To Obtain a Reseller's License? What are the benefits
    By Johnny Boy in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 3
    Last Post: 25 Jul 2010, 08:23 PM
  7. How Do I Obtain a Refund from a DHGate.com Seller?
    By SunOhio in forum Wholesale Discussion
    Replies: 18
    Last Post: 03 Sep 2010, 01:38 AM
  8. How To Obtain A Sales Tax ID
    By Christy1578 in forum Accounting & Tax Discussion
    Replies: 30
    Last Post: 03 Sep 2010, 07:43 AM
  9. How To Approach Existing Customers To Obtain More Sales
    By wholesaleinsight in forum Business Articles & Resources
    Replies: 0
    Last Post: 28 Feb 2010, 07:56 PM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 10:25 PM. - Fixed Width