For consumer packaged goods (CPG) brands, distributors often feel like an unavoidable part of the game. They’re the bridge between your brand and retailers, but let’s face it—they can also be a major source of frustration. Why? Because while they promise to sell your product, the reality often falls far short of that expectation.
Distributors are essential, but they come with challenges that many brand owners don’t anticipate. Misaligned expectations, limited transparency, and passive sales approaches can leave you questioning the value of their role. So, how do you work with a distributor, navigate this complicated relationship and successfully make it work for your brand?
Here’s the real deal about working with distributors—and what you can do to maximise their impact while keeping your sanity intact.
1. The Truth About Distributors: They Don’t Sell
Distributors will often tell you they’ll “sell” your product—but that’s not entirely accurate. What they’re really doing is moving boxes from A to B. It’s a logistics operation, not a sales one. They’re experts at stocking shelves, shipping products, and ensuring your goods get where they need to go. But expecting them to actively promote your product? That’s where many brand owners feel let down.
What You Can Do:
Recognise the limits of their role. Focus on building a sales strategy that drives demand, captures attention, and converts interest into purchases. When you create momentum, your product sells itself—encouraging repeat orders and long-term success.
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2. The Data Dilemma
One of the biggest frustrations for brand owners? Distributors’ reluctance to share sales data. Many fear being undercut or losing the relationship with stockists, so they withhold critical insights about what’s really happening at the wholesaler level.
Why It Matters:
Without data, you’re flying blind. You can’t adjust strategies, forecast demand, or identify which products are succeeding. It also means you can’t add a stockist list, or keep an update list, on your website. This lack of transparency can stall growth, breed mistrust and resentment. It’s not good for anyone; the distributor, the stockist or the brand owner.
What You Can Do:
Communicate the value of collaboration. Position yourself as a partner, not a competitor, and emphasise how shared insights can benefit both parties. If they’re still holding back, consider additional data sources like direct stockist feedback or your own market research to fill in the gaps.
3. Sales Reps vs. Order Takers
Here’s a common misconception: the distributor’s sales representatives are out there hustling to promote your brand. In reality, many of them are simply taking orders. Their motivation often lies in pushing volume, not advocating for your product.
Why This Hurts Your Brand:
Without someone actively championing your product to stockists, it risks being overlooked in favour of more prominent or incentivised brands.
What You Can Do:
Take control of the narrative. Equip the sales team with compelling product stories, sales tools, and incentives that make your product stand out. Alternatively, consider supplementing their efforts with your own sales person or brand ambassadors who can focus solely on growing your presence. One of my top recommendations? Spend a day or two on the road with them. Share your passion, tell your brand’s story, and explain why your product stands above the competition. Not only will this give them valuable insights, but it will also equip them to retell your story with confidence and authenticity when you’re not there.
4. Misaligned Expectations: Margin Resentment
Many brand owners feel a sting of resentment when paying distributor margins and fees for sales representatives who don’t seem to be doing much “selling.” It’s easy to feel like you’re footing the bill for a job that isn’t being done.
The Reality Check:
Distributors are logistics experts, not sales dynamos. Expecting them to drive demand in the same way a dedicated sales team would is setting yourself up for disappointment. They’ll get you to the door, but you’ve got to walk through it.
What You Can Do:
Shift your mindset. See your distributor as one piece of a larger strategy rather than the sole driver of your success. Invest in your own sales and marketing efforts to complement their logistics capabilities.
Why This Matters
Understanding the limitations of distributors can transform frustration into strategy. By recognising their role as logistics partners – not sales teams – you can adjust your expectations and focus on what truly drives your brand’s growth: demand creation, relationships with stockists, and data-driven decisions.
Distributors are a necessary evil, yes. But they don’t have to be a barrier to your success. With the right mindset and proactive measures, you can make the partnership work for your brand – and potentially even turn them into an ally for growth.