Exporting 101: Find the Best Distributor

When exporting products to a foreign country or
geographic region, it’s not necessary to set up a
branch office. An economical way to enter a market is
simply to find a distributor who can help coordinate
sales. Clearly, not all distributors will do a
top-quality job. The following tips can help you locate
a reliable individual or distribution group that will
contribute to your success.

by Jeffrey Moses

The qualities of a distributor that would make a good
fit with you and your product line(s) include:

* Proven track record in similar lines

* Established distribution networks

* Strong financial history indicating solvency and
long-term reliability

* Ability to extend credit to customers

* Ability to invest in your activities by providing
storage, sales staff and local facilities to show
products

* Knowledge of applicable tariffs and taxes

* A mix of product lines that complements your
offerings

* No conflicts of interest with competing products

There are a number of effective ways to locate a good
distributor. When possible, visit the country and meet
with various groups, asking for referrals to reputable
distributors. While in the country, seek advice from
local merchant associations; non-competing foreign and
domestic manufacturers that use distributors; large
companies or organizations that would be likely to sell
your products; U.S. embassies, which may provide lists
of local contacts; trade organizations or Chambers of
Commerce in large cities within the country; and, of
course, your own friends, relatives and business
associates.

While in the country, collect names of potential
distributors. After checking references, meet
with them and describe your products and goals. Select
the distributor that best fits your plans, based on the
above criteria.

If you are not able to visit the country, your search
will need to be done from the United States Good
sources for finding reputable distributors include:

* International Trade Shows

* Foreign consulates in the United States, many of which
can provide extensive lists of distributors within their
countries

* The U.S. Department of Commerce, which provides
matchmaking programs, and the American Traders Index,
which allows you to put your name on a list so that
distributors can contact you

* The U.S. Small Business Administration, which has
Export Small Business Development Centers in various
regions of the country.

* State and city government agencies dedicated to
helping local residents begin international exporting

* State and private business college libraries, which
are likely to carry International Trade Guides of
various types

Online resources for finding distributors include:

1. The International Trade Administration of the U.S.
Department of Commerce, which describes itself as "the
first stop for information about all U.S. Federal
government export assistance."

2. Export.gov, which provides:

* Market research

* Trade events that promote your product or service to
qualified buyers

* Introductions to qualified buyers and distributors

* Counseling through every step of the export process

3. State Web sites that provide exporting information,
such as California’s site, http://www.tradeport.org.

4. The SBA’s Office of International Trade Web site.

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