How To Start Wholesale Distribution Business In South Africa
What is Wholesale Distribution?
Wholesale distribution, as the name suggests, is the sale of merchandise and goods to industrial, commercial, institutional or other professional business users; to retailers; or to other wholesalers. In general, it is just the sale of goods to anyone other than a standard consumer.
How To Start Wholesale Distribution Business In South Africa
- Complete the form Application for wholesale licence, DMRE 38.
- Send the application form to the Department of Mineral Resources and Energy regional office.
- The Department will send you a letter stipulating that you must publish a notice of application in four newspapers.
- You must provide proof of the publication of the notice of application to the department.
- Once you have a licence, you must submit information on your business annually using the Wholesale licence annual information (Submission Form), DMRE 30.
Applying for a petroleum wholesale licence in South Africa
If you want to sell petroleum products to consumers for end use, you must apply for a wholesale licence from the Department of Mineral Resources and Energy.
The licence allows you to buy petroleum products in bulk (1,500 litres or more, per transaction of petroleum products) from a licensed manufacturer, and to sell it to end users.
Frequently Asked Questions (FAQs)
Is wholesale business profitable?
Wholesale Business ideas are one of the most profitable options available in India. This is a setup where the goods reach consumers from a chain of suppliers. This creates business opportunities for wholesalers. Manufacturers sell the products to wholesalers at a slightly lower rate
How does a distributor get paid?
They purchase the products from the warehouse and receive the goods on the spot. Cash and Carry distributors make money by buying products from CPGs and selling them at a profit, which helps cover rent, salaries, and transportation.
What happens if I already operate a wholesaling business in South Africa?
If you are already operating a wholesaling business at the commencement of the Act, which is the 17th March 2006, you will be deemed to hold a wholesale licence. However, you must apply for a wholesale license within a period of six months from the commencement of the Act.
Who may apply for a wholesale license in South Africa?
Any person who wants to sell prescribed petroleum products in bulk to other licensed wholesalers, retailers and end consumers (for own consumption) including those who are currently buying and selling prescribed petroleum products in bulk must apply for a wholesale licence
How much does it cost to start a distribution business? Inventory Expenses;
| Cost | Required? | Max Cost |
|---|---|---|
| Inventory Storage | Optional | $5,000 |
| Package Design ➜ | Optional | $3,000 |
| Shrinkage | Optional | $1,000 |
| Distribution costs | Optional | $750 |
How do I become a distributor with no money?
One of the best ways to become a distributor without an investment is through a direct sales company. Direct sales companies recruit sales representatives to sell products or services through party plans, at flea markets or directly to businesses.
How do I become a Coca Cola distributor in South Africa?
Contact Coca-Cola to discover where the company is seeking new distributors and vending partners. Of course, the local distributor may have an exclusive contract with the corporate partner for its territory. Complete a New Business Request Form, found at CokeSolutions.com.
Can an importer be a distributor in South Africa?
The answer is “yes” – your EU distributor(s) can technically act as your importer. You can also have multiple importers in, for example, different countries. But there are several considerations to make before you ask a distributor to act as your EU importer.
What is the difference between wholesale and distributor?
A distributor works closely with a manufacturer in order to sell more goods and gain better visibility on these goods. Distributors find wholesalers who will resale their products. A wholesaler works more closely with retailers to match their needs through buying products in bulk at a discount.
How do I become a Pepsi product distributor in South Africa?
Becoming a Pepsi distributor requires that you contact the company and inform them of your interests. You can visit one of the company’s bottling plants near you and request for information on the process of becoming one of their distributors
Who makes more profit wholesaler or retailer?
The margin of profit for wholesalers is too small in comparison to retailers. A wholesaler gets 5% at best. Yet a wholesaler makes more money as he sells products in a higher quantity than a retailer who has to bear all the expenses of retail to sell one product at a time.
Do distributors pay manufacturers kin South Africa?
The distributor is the manufacture’s direct point of contact for prospective buyers of certain products. However, distributors rarely sell a manufacturer’s goods directly to consumers.
Can I buy directly from Nestle in South Africa?
Where can I buy Nestlé products? You can buy Nestlé products all over the world, in supermarkets, grocery shops, in smaller local stores and online. For the most up-to-date information please e-mail or telephone Nestlé Consumer Services in the country where you live.
Is Coke a franchise?
Coca-Cola is a franchise as a product distribution system and the largest beverage company in the world. As a product and trade name franchisor, The Coca-Cola Company licenses its franchisees to sell and distribute the end product using the franchisor’s trademark, trade name, and logo