Distributor

A distributor is an intermediary who signs a long-term agreement with an exporter, purchases products, and obtains the right to resell them in a specific region or market. Its core characteristics are buying out the title to the goods and assuming sole responsibility for profits and losses. It usually purchases in its own name, holds inventory, builds sales channels, and provides after-sales service. Use cases are mostly in industrial goods or consumer goods sectors that require localized inventory, rapid customer response, and technical support. Note: A distributor differs from an agent, who does not buy out the title to the goods and only represents the exporter to facilitate transactions and earn commissions. Compared with a dealer, a distributor often covers a broader region and may undertake exclusive or non-exclusive authorization. Exporters should clearly specify in the distribution agreement the territory, term, minimum purchase quantity, price terms, intellectual property, and non-compete restrictions to avoid channel conflicts. In addition, the distributor model requires exporters to give up part of their profit, but it can reduce market entry risks and is suitable for small and medium-sized exporters to quickly expand into overseas markets.