Distributors are the middleman between manufacturers and retailers, purchasing products directly from the manufacturer's at a notable discounted price and then reselling to the latter at a substantial profit. While the distribution industry is pretty lucrative as it has one of the highest returns on investment compared to other sectors, you won't need all that much to get started.
You will need a suitable sized warehouse to store your products, along with all the essentials, such as a warehouse door and others that can be sourced and maintained by Miner Corp. In addition to this, you will need some funds to purchase the first batch of products from relevant manufacturers. Once your distribution business is known in the market, your main concerns will be operational costs and stock management.
With that said, finding success in the distribution industry largely depends on finding the right products in demand and investing in particular brands predicted to make waves in the market. Therefore, it's all about choosing the right products. What's more, you will have to settle on a specific type of product before you can select the best of its kind. So we have listed the five most lucrative types of distribution businesses to consider in 2021.
Sports And Fitness Equipment
According to statistics, the sports and fitness industry is massive, and it shows continual growth over the past two decades. Therefore, choosing products from this industry to start your distribution center is a fantastic idea. Wherever you might be in the world, there will likely be a couple of prominent sports within the local community. As a result, starting a distribution center of sports and fitness equipment is also one of the safest ideas, as you will have a large target audience regardless of the type of products you opt for.
Textiles And Apparel
Textiles and apparel cover everything from shoes to clothing and everything in between. Because everyone needs clothing, the market is vast, and you will likely find business easily. Clothing is a basic human essential, so you won't struggle to find buyers. However, because this choice is so lucrative, you will have to stand out in a sea of competitors. Therefore, product selection and brands are vital for your success.
Computer Parts And All The Accessories
Technology is a rapidly growing industry, and because such a large portion of the world's population uses technology, distribution centers in this category are incredibly lucrative. Computer parts and accessories specifically are a better choice than other types of technology due to the high-in-demand for these products. As a result, you won't have much trouble finding retailers to buy your products no matter where in the world you are.
Stationery And Paper
Even though most businesses are going paperless, there will probably be a large market for paper for several years to come. With that said, stationery items are something that almost everyone needs, whether at work or home; stationery is widely considered essential for many people. You will have a vast market as schools and education facilities also utilize stationery items and paper. What's more, because the manufacturing costs of stationery and paper are so low, you will be able to start a distribution center of this kind with less upfront investment than others. At the same time, you will still be able to rake in substantial profits from each bulk sale.
Everyone needs various home appliances, and while previous decades had the luxury of home appliances that outlasted generations, the same is not entirely true for modern home appliances. In addition, there are always newer and better-looking appliances emerging on the market, so how long they last often isn't a relevant factor for buyers. Because of the high demand for home appliances, starting a home appliance distribution center is exceptionally lucrative. You can stock only one type of appliance or consider a variety depending on your startup budget.
Distribution centers will always be a lucrative industry to start a wholesale business as retailers simply don't have the space required to purchase large bulk orders from manufacturers. The industry continues to show substantial growth over the years. Because you don't need any massive pricey equipment to get started, it is also a startup requiring less upfront investment than many other startup ideas. Even though you will have ongoing costs, the structure of distribution businesses is also relatively simple, so you won't have to create a unique business plan.