Criteria for Selecting Distributors

An Expert's View about Business Administration in China

Last updated: 22 Feb 2011

5-3 Criteria for Selecting Distributors

The criteria for selecting distributors include mainly the distributor's operation scale, financial position, reputation, sales volume and growth, warehousing capability, transportation capability and customer mix. In particular, customer mix refers to whether the distributor has an extensive and in-depth customer network comprising a number of second-tier wholesalers and retailers which can cover a regional-level city.
The distributor's credit position should be the first and foremost criterion in the selection process. In assessing the distributor's strengths in this aspect, its financial position and in particular its ability in settling payment for goods is of utmost importance.

The distributor's reputation is a good indicator of its reliability and thus another important selection criterion. The reputation of the distributor can be gauged by means of its company image and customers' feedback.

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Posted: 21 February 2011, last updated 22 February 2011

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