Distributors evaluate partners differently than brands evaluate distributors. Brands focus on reach, placement, and revenue. Distributors focus on predictability, data quality, and whether the partnership will create operational headaches. Understanding what the other side of the table values is the difference between a partnership that scales and one that stalls after the first purchase order.
This post is written from the operational perspective of what distributors, including marketplace-focused distribution operators, actually look for when evaluating and maintaining brand partnerships. If you are a brand trying to work with a distribution partner, this is what matters.
Accurate Product Data
Nothing erodes a distributor's confidence in a brand faster than bad product data. And by bad, we do not mean ugly spreadsheets. We mean incorrect weights, wrong dimensions, missing UPCs, inconsistent naming conventions, and product descriptions that do not match the physical product.
When a distributor receives a product data file from a brand and the ship weights are off by 20%, every cost calculation downstream is wrong. FBA fee estimates are wrong. Shipping cost allocations are wrong. Margin projections are wrong. The distributor either absorbs those costs, which is unsustainable, or goes back to the brand for corrected data, which delays launch and signals that the brand does not have its operations together.
What good product data looks like from a distributor's perspective:
Complete and accurate item master. Every SKU should have: UPC or GTIN from GS1, product title following marketplace conventions, accurate dimensions (length x width x height) in inches, accurate ship weight in pounds, case pack quantity, case dimensions and weight, country of origin, HTS code (for imported products), and all category-specific attributes populated.
Consistent formatting. If a distributor asks for data in a specific template, use that template. Do not send a different format and expect them to remap it. Data mapping is time-consuming and error-prone. A brand that sends clean data in the requested format demonstrates operational maturity.
Timely updates. When a product changes, whether it is a packaging redesign, a weight change, a new variant, or a discontinuation, the distributor needs to know before the change hits their warehouse. Receiving a shipment of products with new packaging that does not match the existing listing creates work: new images, updated listing data, potential customer confusion during the transition.
Brands that work with an experienced marketplace operations partner benefit from having their product data audited and structured correctly before it reaches the distributor. Clean data at the point of origin prevents problems at every downstream step.
Communication Cadence
Distributors want predictable communication. Not daily emails about nothing. Not silence for three weeks followed by an urgent request. A structured communication cadence that covers the operational topics that matter.
What a Good Cadence Looks Like
Weekly: Inventory status updates, including current stock levels, inbound shipments with ETAs, and any supply chain delays or issues. This can be a simple email or a shared dashboard. The format matters less than the consistency.
Biweekly or Monthly: Performance review covering sales velocity by SKU, return rates, advertising performance (if applicable), and any listing or account issues. This is the meeting where both sides align on what is working, what is not, and what needs to change.
Quarterly: Strategic review covering catalog planning (new product launches, discontinuations), pricing adjustments, promotional calendar, and growth targets. This is where the partnership direction gets set.
As needed: Urgent issues like supply chain disruptions, regulatory changes, competitive threats, or marketplace policy changes that require immediate action. The key word is "urgent." Not everything is urgent. Brands that escalate routine issues as emergencies exhaust their distributor's attention and reduce the response quality for actual emergencies.
What Distributors Do Not Want
Radio silence. A brand that goes quiet for weeks and then resurfaces asking why sales are down is difficult to support. The distributor may have flagged an issue two weeks ago that went unanswered. Regular communication prevents small problems from becoming large ones.
Constant micromanagement. Daily emails asking about individual order status, questioning every advertising decision, or requesting real-time updates on metrics that are reviewed weekly. This level of involvement suggests the brand does not trust the distributor, and it consumes time that could be spent on activities that drive growth.
Surprises. A brand that announces a price increase effective immediately, launches a competing sales channel without discussion, or ships a reformulated product without advance notice creates operational disruption. Distributors plan around the information they have. When that information changes without warning, the plans break.
The brands that distributors enjoy working with communicate consistently, respect the agreed cadence, escalate appropriately, and provide advance notice of changes. It is not complicated, but it requires discipline.
Clear Terms and Pricing
Ambiguity in terms and pricing is the fastest way to create friction in a distribution partnership. Distributors need to model their economics precisely, and that requires clarity on every financial element of the relationship.
Pricing Structure
A distributor needs to know:
- Wholesale cost per unit, broken down by SKU
- Volume-based pricing tiers if they exist, with clear thresholds
- Promotional allowances or temporary price reductions, with start and end dates
- MAP (Minimum Advertised Price) policy, if applicable, with clear enforcement expectations
- Expected retail or marketplace selling price so the distributor can calculate expected margins
When a brand provides vague pricing, such as "around $12 per unit, depending on volume," the distributor cannot build a reliable financial model. State the exact cost. State the exact volume breaks. State them in writing.
Payment Terms
Standard distribution terms typically range from net 15 to net 60, depending on the relationship maturity and the volume involved. What matters to distributors:
- Consistency. Do not change terms without discussion and reasonable notice.
- Clarity. If terms are net 30 from invoice date, state that. If terms are net 30 from receipt of goods, state that. The difference can be significant.
- Credit and returns. What happens with damaged shipments? What is the process for credits on defective products? Is there a return allowance built into pricing? These should be agreed upon before the first PO.
Brands exploring distribution partnerships should have a written terms sheet prepared before approaching potential partners. Walking into a partnership discussion without documented pricing and terms signals that the brand is early-stage and may not be ready for a structured distribution relationship.
Inventory Visibility
A distributor managing marketplace operations cannot operate effectively without visibility into the brand's inventory position. This means knowing:
- Current inventory available at the brand's warehouse or manufacturer
- Production schedule and expected completion dates for new batches
- Lead times from production to delivery at the distributor's warehouse
- Allocation — if the brand sells through multiple channels, how much inventory is committed to each
When a distributor places a replenishment order and the brand responds with "we are out of stock, next batch available in 8 weeks," the distributor faces a potential stockout on the marketplace with no ability to prevent it. The ranking damage, lost sales, and advertising waste that result from an unforecast stockout are real costs.
The solution is not complicated. Brands should provide a monthly inventory and production forecast. Even a simple spreadsheet showing current stock, committed orders, and expected production dates gives the distributor enough information to plan replenishment and manage marketplace inventory levels.
For brands that want an operator to manage marketplace fulfillment and inventory, providing this visibility is a prerequisite. The operator cannot optimize what they cannot see.
Professional Operations
This category is broad, but it covers the operational behaviors that separate brands distributors want to work with from brands they tolerate working with.
Shipping and Logistics
When a brand ships to a distributor's warehouse, the shipment should arrive as expected. That means:
- Accurate advance ship notices. The distributor knows what is coming, how many units, and when it will arrive.
- Proper palletization. Pallets built to the distributor's specifications, not whatever was cheapest at the origin warehouse.
- Correct labeling. Case labels that match the packing list, with scannable barcodes.
- On-time delivery. Within the agreed delivery window. Consistently late shipments disrupt receiving schedules and warehouse operations.
Brands that ship inconsistently, with wrong quantities, mislabeled cases, or without advance notice, create receiving bottlenecks that slow down the distributor's operation and delay marketplace replenishment.
Responsiveness
When a distributor identifies an issue, whether it is a listing problem, a quality concern, a customer complaint pattern, or a pricing question, they need a response within a reasonable timeframe. For most operational issues, that means within one business day. For urgent issues like a listing takedown or a safety concern, same-day response is expected.
Brands that are difficult to reach, that route all communications through a single overloaded contact, or that take a week to respond to straightforward questions are operationally expensive for a distributor. The distributor's team spends time following up instead of working on growth activities.
Documentation Readiness
A professionally operated brand has its documentation organized and accessible:
- Safety Data Sheets for applicable products
- Certificates of Analysis for supplements, food, and cosmetics
- Product liability insurance certificates
- Letters of authorization for marketplace selling
- Trademark registrations for Brand Registry
- High-resolution product images and brand assets
When a distributor or marketplace partner requests documentation, the brand should be able to provide it within days, not weeks. Delayed documentation delays listings, delays shipments, and delays revenue.
Reliable Sell-Through
Ultimately, what distributors want most is products that sell. Every operational consideration above supports this fundamental requirement. Clean data creates accurate listings. Consistent communication enables coordinated marketing. Clear terms allow sustainable economics. Inventory visibility prevents stockouts. Professional operations enable efficient fulfillment.
But sell-through also depends on the product itself. Distributors evaluate potential brand partnerships based on:
- Product-market fit. Is there demonstrated demand for this product in the US market? Are comparable products selling well on Amazon and Walmart?
- Competitive positioning. Does the product offer something meaningfully different from existing options? Is the price point viable given marketplace fees and advertising costs?
- Brand investment. Is the brand investing in its own awareness through social media, influencer partnerships, PR, or other channels? Marketplace sales do not happen in isolation. Brands that drive external traffic to their marketplace listings perform better.
- Catalog depth. A brand with one SKU is harder to build a sustainable business around than a brand with a coherent product line. Distributors prefer partnerships with catalog expansion potential.
- Review velocity and rating. For products already on the marketplace, the review trajectory matters. A product with 50 reviews at 4.5 stars and growing is more attractive than a product with 200 reviews at 3.8 stars and declining.
Distributors are not charities. They invest time, warehouse space, operational labor, and sometimes advertising capital into each brand they carry. The return on that investment comes from reliable sell-through. Brands that understand this and invest in their own product quality, market positioning, and brand awareness are the ones that attract and retain the best distribution partners.
If you are a brand looking to understand how your product and operational readiness align with what distribution partners expect, request a Snapshot. If you believe your brand is ready for a structured marketplace distribution partnership, apply here. For specific questions about partnership structure and requirements, contact us.
FAQ
How often should a brand communicate with its distribution partner?
A weekly inventory and operations update, a biweekly or monthly performance review, and a quarterly strategic review is a solid cadence for most partnerships. The weekly update can be as simple as a short email or a shared dashboard update covering inventory levels, inbound shipments, and any issues. The monthly review should cover sales performance, advertising metrics, and operational KPIs. The quarterly review addresses catalog planning, pricing, and growth strategy. Consistency matters more than frequency.
What product data does a distributor need before launching a new SKU?
At minimum: UPC from GS1, product title, complete and accurate dimensions and weight (both product and shipping), case pack quantity, wholesale cost, MAP price (if applicable), country of origin, HTS code, all category-specific marketplace attributes, high-resolution images meeting marketplace standards, and any required compliance documentation such as Safety Data Sheets or Certificates of Analysis. The more complete and accurate this data is at the outset, the faster the listing can go live and the fewer operational issues arise downstream.
What margin does a distributor typically need to operate a marketplace business?
Marketplace distribution margins vary by category, volume, and the services provided. For a distributor managing listing creation, inventory management, fulfillment, advertising, and customer service, a typical gross margin requirement is 25% to 40% of the retail selling price. This margin must cover marketplace referral fees (typically 8% to 15%), fulfillment fees, advertising costs, warehouse and labor costs, returns, and the distributor's operating profit. Products with very low retail prices or very thin margins are difficult to distribute profitably on marketplaces because fixed per-unit costs consume a larger share of revenue.
How can a brand demonstrate readiness for a distribution partnership?
Have your product data organized in a clean, complete format. Have compliance documentation assembled and accessible. Have pricing and terms documented in writing. Have inventory and production capacity sufficient to support marketplace growth without stockouts. Have high-quality images and listing content prepared to marketplace standards. And have realistic expectations about timeline and investment. A brand that shows up with all of these elements signals to a distributor that the partnership will be operationally smooth and worth investing in.