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Pitching retailers as an Amazon brand

How to Find Distributors for Your Amazon Products

By Martin Mecar, founderOctober 9, 20267 min read

A distributor buys your product, warehouses it, and sells it on to stores you could never service yourself. In exchange they take a layer of margin and a layer of control. The question is not whether that trade is good in general — it is whether the distributors who serve the stores you actually want will carry a brand at your stage, and how to find those specific companies rather than a generic list.

The fastest way to narrow it is to work backwards. Pick twenty retailers you want to be in, find out who supplies them, and approach those companies. That is a better list than any directory will give you, and it takes about a day.

What a distributor does that you cannot

Three things, and each one is worth understanding before you decide you need them.

They carry the accounts. A distributor already has purchase agreements, terms and delivery schedules with hundreds of stores. Getting one new product into an existing account is a conversation; getting a new supplier approved is a project.

They carry the cash. They buy from you and get paid by stores later. That converts a hundred small receivables into one larger customer, which for an Amazon brand used to a fortnightly marketplace payout is a meaningful cash flow difference. The comparison is worked through in Amazon payouts versus net 30.

They carry the logistics. Consolidated deliveries, a single invoice, returns handling, and in some categories the compliance and licensing that individual stores require. A grocery chain that would need you to meet a routing guide will take the product from a distributor who already meets it.

What they do not do is create demand. Distributors push product into accounts that already want it; they rarely generate the want. A brand that arrives expecting to be sold is a brand that gets delisted at the next review.

The types, and which one fits you

Distributors are not interchangeable, and approaching the wrong type is the main reason a first search goes nowhere.

Category specialists. They carry one category deeply — natural food, pet, beauty, hardware — and their reps know every store in it. Best fit for most Amazon brands, because their accounts are the independents and regional chains likely to take a new brand.

Regional generalists. Broad assortment for stores in a defined territory. Useful for convenience, grocery and general merchandise, and often the only route into small chains in a specific state.

Full-line national distributors. Very large, very selective, and usually looking for brands with proven retail sell-through rather than marketplace history. Worth approaching later, not first.

Drop-ship and online distributors. They list your product in a catalog other online sellers order from. Be careful here — this is exactly the route by which your product ends up on your own marketplace listing at a price you did not set, which is the problem described in wholesale customers reselling on Amazon.

Exporters. They buy for a foreign market. Different pricing, different labelling, and a separate set of questions entirely.

Working backwards from the stores you want

This is the method that actually produces names.

List twenty stores you would like to be in — the ones that came out of your buyer research. Then find out who supplies them.

Ask. Calling an independent store and asking which distributors they order your category from works far more often than sellers expect. Store owners are generally happy to say, because a supplier who comes through their existing distributor is easier for them to buy.

Look at comparable brands. A brand your size in your category will often name its distribution partners on its site, or its trade show listing will. If a distributor carries a brand like yours into stores like the ones on your list, they are a qualified target.

Check the shelf. In many categories the distributor's sticker or the case markings are visible in the stockroom, and a friendly manager will tell you.

Walk a trade show. Distributors exhibit at the same shows as brands, and one afternoon of conversations produces better qualification than weeks of cold research. Whether the show is worth the trip is covered in trade shows for Amazon sellers.

Then check association directories and regional buying group membership lists to fill the gaps.

Twenty stores usually resolves to somewhere between three and ten distributors. That is your real list.

Qualifying them before you give away margin

Adding a distributor costs you margin permanently and control partially. Ask these before you offer a price.

Which retailers do they actually serve, by name and type? Not "the midwest" — the store types and the chains. If their accounts are not the stores you want, nothing else matters.

How many sales representatives do they have and do they physically visit stores? A distributor whose reps walk in weekly is a different proposition from one that is a warehouse with a catalog.

Do they take on new brands, and how many a year? Some are full. Asking directly saves a month.

What territory do they expect, and do they expect exclusivity? Decide your answer in advance.

What is their position on marketplace sales? Some will require you to control your listing or restrict your own online pricing. Some will not care. You need to know which before you negotiate.

What are their payment terms and what do they charge back for? Distributors have their own deductions — damages, returns, promotional allowances, new item fees. These are normal and they change your real margin.

The margin stack has to work before you start

A distributor only makes sense if your product can support two layers of markup and still land at a shelf price shoppers will pay.

Take a made-up but plausible case. A shelf-stable food item at nine dollars ninety-nine retail. The store buys at five ninety-nine, keeping four dollars. The distributor buys from you at four dollars fifty, keeping a dollar forty-nine. You are left with four fifty against your landed cost, out of which come your overheads and any promotional support.

If your landed cost is a dollar twenty, that works comfortably. If it is three dollars, it does not, and no amount of negotiation fixes it. The honest response then is either a different retail configuration with better economics or a direct-to-store model at a higher wholesale price. The arithmetic behind both routes is in wholesale pricing for Amazon products.

Do this calculation before the first conversation. Walking into a distributor meeting and discovering in real time that your product cannot support their margin is a conversation you do not recover from.

What they will ask you for

Have this assembled before you send an email, because the reply to a good first email is usually a document request rather than a conversation.

A line sheet with distributor pricing and larger minimums. Sell sheets for each item. Case and pallet specifications with dimensions and weights. Barcodes on every sellable unit. Country of origin, and the regulatory paperwork your category requires. Product liability insurance, which surprises more first-time suppliers than anything else on this list. Lead times and honest production capacity. And a statement of what you will do on the demand side.

If you cannot produce most of that within a week of being asked, you are not ready for a distributor yet, and the better move is to get two or three direct store accounts first so you have sell-through to show.

The email that opens this conversation has its own shape, and it is not the one that works on store buyers — it is in emailing distributors as an Amazon seller.

Deciding what belongs to whom

Before you sign anything, decide three boundaries and write them down.

Which accounts are theirs and which stay yours. The common arrangement is that accounts a distributor opens belong to the distributor and your existing direct accounts stay direct, with a list attached to the agreement.

What territory they have, and whether it is exclusive. Exclusivity should always carry a volume commitment and a term you can exit if the commitment is missed.

What happens on the marketplace. Say what your listing price will be relative to the shelf price, and whether they or their customers may sell your product online. Getting this wrong is how brands end up competing with their own distributor on their own listing.

Narrowing the search before you spend a week on it

The backwards method needs a starting list of the retailers you want, and that is the part a lot of Amazon brands have not done yet. If you are working from a blank page, pasting your listing into WholesalePilot returns the kinds of retailers and distributors that plausibly stock products like yours, which is enough to know which category of distributor to research rather than which specific one to email.

The named contacts and the qualification are still yours to do — but you are doing them against a shortlist. The parallel exercise for stores is in how an Amazon seller finds retail buyers.

Questions Amazon sellers ask about finding distributors

Do I need a distributor to get into retail? No. Independents and many regional chains buy direct, and direct gives you more margin and better data. Distributors become necessary when you want reach you cannot service.

How much margin do they take? Enough that selling your product is worth their reps' time, which varies by category and handling. Ask each one rather than assuming a number.

Will they take a brand with only marketplace history? Some will, if the category demand is clear and the margin works. Most prefer at least a few direct accounts with sell-through, which is a good reason to open those first.

Can I work with more than one? Yes, split by territory or by channel, with the boundaries written down. Overlapping distributors compete on price and both end up unhappy.

What if a distributor wants my product off the marketplace? Treat it as a commercial question. Ask what volume commitment replaces what the listing earns, and expect the honest answer to be less than you would need.

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