CSDC is an expert services Company that offers Distribution and Logistic services for Publishers, Studios, and Manufacturers.
What is the Challenge?
With over 100 retail chains in the tech market, entering the North American marketplace, launching products or expanding to new retail chains is a challenge. Distributors carry the products the Retailers want; Retailers carry what Distributors can supply.
One of the biggest hurdles in entering the North American marketplace (Channel) is getting your products placed with the National Distributors. This is true no matter how much awareness and demand you have created for your products, how good the technology is, or if you have a better, lower-priced product.
These Channel Distributors are the primary suppliers to the National Retail Chains. The risks are high for Distributors with unproven or unknown products. Most will not even consider a new product or product range that will not produce $2 million in revenues in the first year; the larger Distributors seek $5 million and up. Thus, if you cannot supply the Distributors, you will not get to the Retailers' shelves.Distribution
Today, the North American consumer products retail market is a "two step" distribution system: Manufacturer, Studio or Publisher to Distributor and then Distributor to Retailer. Very few Retailers will buy direct from the Manufacturer. This is based on logistics, breaking up bulk shipments, the risk factor, or the fact that the Distributor is acting as the "Bank" to supply the lines of credit needed by the Retailers.
It is virtually impossible to get the large Distributors to handle new vendors without great demand for the new product from consumers or a proven track record and sales of $5 million annually. It may also cost tens of thousands of dollars in application and initial set-up fees.
Most of today's biggest and best web retailers exclusively use the services of large Distributors to provide a total solution. This solution encompasses original product setup and artwork, order processing, credit card transactions, shipping and billing, even returns, all for the e-tailer, direct to the consumer. Without key Distributor contracts and the sales relationships to get products listed and promoted, vendors are virtually locked out of the virtual retailers.
Did you know that as a consumer, you can purchase a product from www.bestbuy.com and be supplied and shipped from ; or purchase from and ultimately receive your purchase from .
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