How to Get into the Game of Grocery Store Distributors

How to Get into the Game of Grocery Store Distributors

…. before getting yourself prepared for grocery store distribution business, it will be worthwhile to understand some important facts and statistics about wholesale and grocery store distributorship in the US.

From research and estimates, the US grocery eCommerce space grew at the rate of 18.2 percent to 19.89 USD this year, 2019. It even became the fastest product group online. The expectation is that this category will grow at above-average rates in the years ahead.  

The business of wholesale distribution is a pure buying and selling business. It is a business that requires excellent negotiation skills, the right frame of mind to detect the next trending item in your particular category, and strong salesmanship. The concept here is to purchase the product at a low rate, then sell it at a rate that still makes the business very attractive to your customer by tacking a good price on it.

Business professionals agree that interested individuals should have diverse job background in order to succeed as grocery store distributors. Many experts believe that sales background is important. As a particular individual will do well if they have a little knowledge about what they are going to face than being a complete novice in the game.

Why You Must be Interested in this Business

The grocery store distribution industry, which acts as the middleman between food manufacturers and retailers, has shown positive growth in recent years. Revenue is not fixed as it tends to rise and fall with changing fuel costs, food product prices and consumer spending.

The state of the industry is very healthy and lucrative. Currently, there are more than 5,754 businesses in the United States, representing about $216.3 billion in annual revenues. The industry grows at 2 percent to the value of the nation’s private industry GDP, and most distribution systems comprise of many fragmented, privately held companies. 

Every year, the U.S. retail cash registers and online wholesalers make trillions of dollars in sales and 25 percent comes from furniture sales, apparel and general merchandise. This is good for wholesale distributors who depend massively on retailers as customers. 

Setting Up the Store

For entrepreneurs who want to begin their own wholesale distributorship, there are basically three options to choose from: