How to Find a Distributor for Your Product in Australia: A Practical Guide for Manufacturers

You've proven the product. Customers who find you reorder, a few local shops stock it, and you can make far more than you currently sell. What you can't do is visit every retailer, workshop or site in the country yourself. That's the job of a distributor, and finding a good one is usually where small manufacturers get stuck.

This guide explains how to find a distributor for your product in Australia: what distributors actually want to see, where to look for them, how to check them before you sign, and the pricing and contract rules that catch suppliers out. It's written for Australian manufacturers and brand owners selling physical products to trade, with a source for every rule and figure.

Why finding a distributor is harder than it looks

A distributor isn't just another customer. They buy your stock, warehouse it, extend credit to their own customers and put their sales team's time into your range. The Australian Industry Group (Ai Group) describes a distributor as a business that "takes title" of the goods and resells them, often carrying complementary and competing lines and offering after-sales service (Ai Group).

Because they carry that risk, they're choosy. A new line has to earn its shelf space against products they already know will sell. A common mistake is approaching distributors too early, with an unclear price structure and no evidence of demand.

Distributor, wholesaler or agent: know what you're looking for

People use these words loosely, so be clear about the arrangement you want before you start searching:

• Distributor. Buys your goods and resells them, usually to retailers, trade customers or end users, and earns a margin. Ai Group notes they usually carry inventory, extend credit and take on marketing, so they need a higher margin than an agent.
• Agent. Doesn't own the goods. They find buyers and are usually paid commission, while you deliver, invoice and collect payment yourself. You keep more control over branding and pricing, but carry more of the risk of non-payment and returns (Ai Group).
• Wholesaler. In everyday Australian use, a business that buys in bulk and sells on to retailers or trade. Many wholesalers act as distributors for some brands.

Ai Group's guide was written for exporters, but the same trade-offs apply when you appoint a partner to cover another state.

Get distributor-ready before you pitch

Work out a price ladder that leaves room for everyone

Start from the price the end customer will pay and work backwards. Ai Group warns that a distributor may add a mark-up of up to 50 per cent, or more, before your product reaches a retailer, and that some suppliers find their own margin is too thin to leave enough for the distributor and still be competitive (Ai Group). If your numbers only work when you sell direct, fix that before you approach anyone.

Prepare a clear trade price list with your distributor price, a recommended retail price (RRP) if relevant, minimum order quantities, carton quantities and lead times.

Have the barcodes and labels your distributor's customers need

If your product is heading for retail shelves, barcodes matter. GS1 Australia's summary of major retailer requirements lists consumer-unit barcodes, carton barcodes and pallet labels (SSCC) as mandatory, and warns that getting them wrong can cause delays or rejected orders (GS1 Australia). GS1 Australia is the authorised source of GS1 barcode numbers in Australia, which use the 93 prefix (GS1 Australia). Check each buyer's own requirements too.

Show your product is compliant

If a mandatory safety or information standard applies to your product, it must be met before the product is supplied in Australia. The ACCC is clear that "supplier" includes manufacturers, importers, distributors and retailers (ACCC Product Safety). A distributor who resells a non-compliant product is exposed too, so expect them to ask for test reports or certificates.

Build a one-page distributor pack

Include what the product is and who buys it, specifications, photos, your price ladder, customers you can name with permission, and the support you'll provide, such as samples, training and marketing material.

How to find a distributor for your product in Australia: 7 places to look

1. Ask the businesses you want to reach

The quickest route is often the end of the chain. Ask the retailers, workshops or contractors who'd use your product who they already buy similar lines from. If three of them name the same distributor, that's your shortlist.

2. Look at who carries comparable brands

Find brands that sell to the same customers as you without competing head-on, then check their "where to buy" or stockist pages and price lists. Distributors that already carry complementary lines know your buyers and may welcome a product that fills a gap. Ai Group also notes that a distributor juggling many products may divide its attention, so ask how much focus your range would really get.

3. Use industry associations

Most industries have an association with member lists and events. Distributors in your sector may be members, and Business Queensland also suggests asking industry associations which events are worth attending.

4. Go to trade shows as a visitor first

Business Queensland notes that trade show visitors are typically representatives of companies, distributors, resellers and suppliers in the industry, and suggests attending as a visitor first to see the format and audience (Business Queensland). Walk the show, note which distributors exhibit and what they carry, and follow up while you're fresh in their minds. If you exhibit later, the same guide recommends inviting key prospects beforehand and having a plan to collect leads. We cover trade shows and other channels in how to get wholesale customers in Australia.

5. Search B2B directories, and be listed in them

B2B directories let you filter businesses by category, state and type. The Cravio B2B Directory lists Australian manufacturers, wholesalers and distributors, and you can filter by business type, state and category. It's new, so it won't have every distributor yet, but it works both ways: a complete listing means a distributor looking for new lines in your category can find you and contact you directly.

6. Search Google like a buyer would

Search for your product category plus "distributor" and a state or city. Then make sure distributors researching you find a page for each product line, your ABN and real contact details. Our guide on how to get your business found on Google walks through this.

7. Reach out directly, and legally

A short, specific approach to a well-matched distributor beats a mass mail-out. Commercial emails need consent, must identify you and must include a working unsubscribe option (ACMA). Phone is often simpler for a first approach, with the email following as a requested introduction.

If councils or government agencies already use products like yours, you can also sell to them directly. Our guide on how to win government contracts in Australia explains where tenders are listed and how to put in a strong bid.

How to shortlist and check a distributor

Ai Group suggests speaking with four or five potential partners before narrowing the list, asking for trade references and considering a professional credit check to confirm financial stability. Its most important factor is whether you can build a close working relationship (Ai Group).

Before you sign, also:

• check the business on ABN Lookup and confirm the legal name matches their paperwork
• use ASIC's guidance on checking another business is trustworthy, including its registers
• call two or three brands they already distribute and ask about payment, reporting and sell-through

Useful questions to ask the distributor:

• Which customers and regions do you actually cover, and with how many reps?
• Which competing or complementary lines do you carry?
• What would you need from us to launch: stock, samples, training, marketing support?
• How will you report sales, and how often?

What to agree in your distribution agreement

Agree the big issues first, then have a lawyer draft the agreement. Ai Group makes the same point: arguing over core issues during drafting wastes time and money.

Territory and exclusivity

Many distributors want exclusivity in a territory because they're investing in building your brand there. If you agree, Ai Group recommends setting performance measures and a termination clause for non-performance. Under competition law, restrictions such as not reselling outside a territory are a form of exclusive dealing. The ACCC says exclusive dealing is common and only illegal when it substantially lessens competition (ACCC).

Pricing

You can give your distributor an RRP list and set a maximum resale price. You can't set a minimum resale price, offer a discount on condition they sell at or above a minimum price, or stop supplying them because they discount. That's resale price maintenance, which the ACCC says is illegal unless you first obtain an exemption from it (ACCC).

Payment terms

Put payment terms in the agreement and on invoices. To reduce credit risk, business.gov.au suggests credit checks, credit limits and making clear customers don't own the goods until they've paid in full (business.gov.au).

Faulty goods and returns

If a product fails a consumer guarantee because of a manufacturing fault, the manufacturer must reimburse the supplier's costs of the repair, replacement or refund, and can't use a contract to take that right away (ACCC). Agree a practical process for claims, so neither side is surprised.

Fair terms

If you use a standard-form contract with a small business, the unfair contract terms laws can apply, and unfair terms are now illegal and can attract penalties (ACCC).

Where the Cravio B2B Directory fits

We built the Cravio B2B Directory for Australian businesses that make, stock and supply products to other businesses. For a manufacturer looking for distribution, it's another credible place to be found:

• Your own profile page with your products, up to six photos, location and contact details.
• Browsing by state, category and business type (manufacturer, wholesaler or distributor).
• Direct contact. Enquiries come to you by phone, email or your website, with no commission.
• Reviewed listings. Our team checks every new listing and every edit before it goes live.
• Free for founding members, with no credit card needed. If you'd rather not write it yourself, our team can set up your listing.

Once a distributor signs on, orders often start arriving by email and PDF. If retyping them becomes a bottleneck, see our guide to AI order entry for wholesalers and our work with manufacturers and distributors.

FAQ

How much margin does a distributor take?

It varies by industry and by what the distributor does for you. Ai Group warns the mark-up may be up to 50 per cent or more before the product reaches a retailer, so ask each distributor about their expected margin early.

Should I give a distributor exclusivity?

Only with performance targets and a clear way out. Exclusivity can motivate a distributor to invest in your brand, but without targets and a termination clause you can be stuck with a partner who isn't selling.

Can I tell my distributor what price to sell at?

You can recommend a price and set a maximum, but you can't enforce a minimum resale price. That's resale price maintenance, which is illegal without an ACCC exemption.

Can I sell direct and through a distributor at the same time?

Often, yes, but agree upfront which customers, channels or regions you'll keep, so you aren't competing for the same accounts.

Is the Cravio B2B Directory free?

Yes. A standard listing is free for founding members and no credit card is needed. You sign up with your company email and we review your listing before it goes live.

List your business where distributors and buyers look

Finding a distributor comes down to being ready, being visible and checking partners carefully. The Cravio B2B Directory gives your business its own profile page, so distributors and trade buyers can find you by state, category and type and contact you directly. Create your free account with your company email, and we'll review your listing before it goes live.