Small businesses that can`t afford this deal tend to use distributors more to cut costs, do more (distributors can also offer after-sales services, especially for tech products) while getting their products noticed by customers. And when distributors are hired, a distribution contract is designed and used. A distribution agreement is considered exclusive if the company agrees that its products will be marketed in a given territory only by the distributor concerned, or if the company is marketed only with that particular distributor in all regions. A non-exclusive distribution agreement stipulates that a company may cooperate with several distributors to deliver its products within the same territory. Did you know that wholesale trade in the U.S. was worth about $7.582.3 billion as of 2019? According to Statista. Exclusive distribution agreements often require higher performance requirements from the distributor and are common in the case of a luxury product and high-tech markets. The PDF distribution agreement must indicate whether you have the exclusive right to market the company`s goods as a sole distributor in a given region. In addition to the sections above, there are a few important points that must be included in a distribution contract. They are so important that they make a distribution agreement what they really are. If you use an existing sample distribution agreement, you will easily notice it in the text. We highlight some of them below. The Company produces and sells the products listed in Section 1.c below (the “Products”).
The Distributor wishes to purchase the Products from the Company for resale in the areas or geographical areas defined in Section 1.b (the “Area”). . . .