Distributor

A distributor is an intermediary that signs a distribution agreement with an exporter, buys goods outright in its own name for a specific territory or market, and resells them to downstream customers, bearing its own profits and losses. Its core features are: outright purchase of goods, ownership, assumption of sales risk, and usually exclusive or non-exclusive distribution rights. Usage scenario: when an exporter wants to enter an overseas market quickly and reduce direct selling costs, it often chooses a local distributor. Points to note: the agreement should clearly specify the distribution territory, term, minimum purchase quantity, price terms, intellectual property protection, non-compete clauses, etc.; also note the difference from an 'agent'—an agent does not buy the goods outright, only represents the exporter to facilitate transactions and earns a commission, and does not bear sales risk. Compared with a 'reseller,' a distributor emphasizes a longer-term contractual relationship with the supplier, while a reseller broadly refers to any intermediary resale link. In addition, a distributor may request exclusive rights, and the exporter should assess its market coverage capacity to avoid restricting other channels due to exclusive clauses.