starting distribution business or online shop
by alucard13mm, Window Shopper
- Created: August 16, 2010, 2:01 am
hello, this is my first time on this forum. I would like to ask some questions regarding distribution.
let's say i want to start a distribution business in my country (USA). i would like to distribute products from this japanese company to retail stores located in USA, but there is already a distributor doing this at the moment and they are well established. is it possible for me to ask this japanese company if i can distribute their products? or does that other distributor have special and sole rights to distribute in the USA?
this also leads up to my next question. if i wanted to start an online retail store, do i have to get my products from that well established distributor (mentioned above)? or can i obtain the products from the japanese manufacture/distributor (or is this illegal?)? i kind of want to skip the middle man.
going from manufacture -> distributor -> retail causes the product to have a 200-300% markup in price. in japan, the product sells for 60 US dollars in retail stores so those retail stores probably bought those products for 20-30 US dollars from japanese distributors/manufactures. in USA however, the same product sells for 120-150 US dollars (unknown on how much the USA distributors sell to retailers for). i do understand that there is cost of shipping and customs fee and etc etc, but it just seems ugly to have such a high markup.
just contemplating the idea of starting a business. thank you in advance. haha i guess i should've majored in business instead of human bio.
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