How to become a distributor of organic products?

In this article, we will walk you through the entire journey of becoming a distributor of organic products. Plus, we’ll also take a look at three different types of distributorships you can choose from.

Let’s dive in!

Did you know that almost 1 out of 10 people in the world fall ill because of food poisoning? A report from WHO shows around 4,20,000 people die every year because of toxic food. This data is scary and tells us what we are eating is not healthy. The excessive consumption of artificial chemical-based food and unhealthy eating habits are the leading causes of many lifestyle diseases. Pollution and lack of exercise are the other contributing factors.

If you wish to have sound health, it's crucial to improve your eating habits, add organic food items in your meals, replace all chemical-based products with organic products, and look for some trusted distributors.

You can also start your journey as an organic products distributor.

Becoming an Organic Products Distributor

Despite the prevalence of bad food habits, people are getting conscious of their health. The Indian wellness industry is seeking a whopping growth of 12% every year. Last year the industry reached a value of USD 849.5 million, and it is expected to hit a value of USD 2601 million by 2026.

The global COVID-19 pandemic has taught everyone that immunity and good health are essential. Consumption of organic commodities is becoming more popular, and people are looking for some promising organic food wholesalers.

The above stats are enough to show that becoming an organic food distributor can be a good business. Also, it’s straightforward to get a franchise from a renowned brand.

In this article, we will tell you everything that you need to know before starting your business. The area of organic items is not limited to food products. There are a lot of commodities that fall under this sector. Let’s have a look at the type of organic products that you can circulate.

Types of Distributorship

Organic products distributors are divided into the following three categories. You can start with any of the three by keeping in mind some factors like space requirement, investment, and ROI (Return of Investment).

1. Organic Food Distributorship

The need for organic food and beverages in the market is higher than all other organic wholesale food suppliers. Popular FMCG (Fast-Moving Consumer Goods) manufacturers of organic food items are in constant search of reliable organic food distributors.

If you are thinking of becoming one, then consider the following requirements:

Space availability: 1000 square feet
Initial investment: INR 2-5 lakhs
ROI: 10 per cent
Distributorship level: City level

2. Organic Clothing Distributorship

Organic clothing includes the manufacture of clothes with organically grown materials like cotton, jute, silk, or wool. Organic clothing is in demand because it doesn’t irritate the skin and is healthy for sensitive and allergic skin types.

Some prerequisites are mentioned below:

Space availability: 200 square feet
Initial investment: INR 2-5 lakhs
ROI: 30-35 per cent
Distributorship level: City level

3. Organic Personal Care Distributorship

Distributorship of organic personal care products provides you with the highest ROI compared to clothing and organic food wholesalers. Personal care and beauty products are already popular among people, and selling these items without artificial chemicals can be an excellent business step.

Some factors you need to look at are given below.

Space availability: 300 square feet
Initial investment: 1-2 lakhs
ROI: 40 per cent
Distributorship level: City level

Steps to Establish Yourself as an Organic Product Distributor

1. Get Necessary Licenses

Every business requires various licenses to operate, and organic product distribution is no exception. There are a set of formalities and permits needed to start as organic wholesale suppliers:

• First of all, apply for a food permit from the health department of your state.
• Open a bank account under your store name.
• Register for Employer Identification Number (EIN) on the IRS website.
• Understand all the rules and make sure your store gets certified by the Organic Trade Association.
• Use only your business ATM card for all purchases.

2. Arrange for Upfront Investments

You will need a good initial investment for maintaining the proper stock of all necessary organic products. Organic products are, in general, more costly than standard products. That’s why an adequate upfront investment is crucial when starting as an organic products wholesale distributor.

3. Choose a Store Location

To become an organic wholesale supplier, selecting the right store location for your business is the foundation. Your location is something that can make or break your organic product distribution business. Hence, selecting the right one is imperative for your overall success. Below are some tips you can consider:

• Choose a location with less competition to get more sales.
• A location with easy access to public transport and good parking space will be favourable.
• Choose a safe area, and make sure the rent is not more than 4% of your sales.

4. Hire Employees

From sales and bookkeeping to handling customers, it’s impossible to manage everything alone. Enter: Employees. Hiring a few employees for your organic food products wholesale store will not only lessen your burden but also allow you to focus on other crucial tasks. So, make sure you hire an experienced workforce who can handle customer queries and fulfil orders efficiently.

5. Set Selling Prices

To establish yourself as a better distributor, you need to keep your prices reasonable and similar to your competitors. If you don’t have any competition, then set a price which is neither very low nor very high. Pricing too high will lead to a decrease in sales. Also, make sure to keep your price fixed for everyone to build trust among your customers.

6. Focus on Reliable Customer Service

Good customer interactions and support will boost the odds of customer revisits. Training your staff well about organic products will not only make your customers happy but also generate more sales. So, make sure your customers do not have any persisting doubts related to your products. This can only be achieved if your staff is well-informed about all the features and benefits of the products you’re selling.  

7. Management is the Key

Maintaining your business needs a lot of effort. Managing stocks, price, and transport single-handedly can be confusing. That’s why it’s essential to use inventory management apps and accounting software. If you earn significant growth in your business, then expand your team to manage the different tasks.

8. Advertise your Business

Advertisement is necessary to build brand awareness. The better your promotion, the more will be sales. You can target your customers with the help of both online and offline advertisements. Post about your products on social media platforms and mark the location of your store on Google map. Also, providing coupons and other promotional offers is a great way to attract more customers.

The Takeaway

Organic products are now becoming the talk of the town, and consumers are shifting towards them. Health is becoming a priority for everyone, and they are willing to pay more for the right product. Therefore, you must choose the right brand products to sell in your locality.

Collaborating with a trusted and established brand and selling their products will surely make you a lot of money. And above all, it will leave your customers satisfied with your services.

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FAQs

Q. What is the difference between organic food and locally-grown food?

Ans. Unlike organic products, local food is grown in your local community, region, or country. Local food is fresh and full of flavour. However, these may or may not be free from any pesticides, as compared to organic produce.

Q. What challenges can you face while starting an organic product distribution business?

Ans. First of all, you will most definitely face a lack of awareness. Most people are not aware of the benefits organic products can provide. Second, since organic products are more costly than regular products, not everyone can afford to buy them.

Q. Why are organic products costlier than conventional products?

Ans. The supply of organic products is limited, but their demand is rising exponentially every year. The labor and post-harvest management costs of such products are also high. Plus, due to limited production, it isn’t easy to market these products to the masses.

Q. Is it compulsory to get organic food certified?

Ans. Short answer – yes. Without certification, it’s impossible to ensure the production and handling of the products are carried out according to the organic standards specified by the government. Further, having a certification builds trust among your customers and promotes healthy competition in the marketplace.