Basics
How to get an FMCG distributorship: what companies check, and what to ask before signing
Who appoints distributors, what the company will check, the terms to get in writing (territory, margin, credit, claims, exit), and how to spot a fake distributorship offer.
4 October 2026 · 7 min read
Short answer
Find the company’s area sales manager for your town and ask which areas need a distributor. Go prepared: money, godown, vehicles, GST registration and the shops you know. Before signing, get the terms in writing: territory, margin, credit days, claims and returns. Never pay a “registration fee” to someone you have not verified with the company directly.
Every FMCG company needs distributors: someone local who keeps stock, delivers to shops, gives credit and collects money. Companies appoint a new distributor when an area is not covered well, when an old distributor leaves, or when they launch in a new region. Your job is to be the obvious choice when that happens.
Step 1: Find the right person
Distributors are usually appointed through the company’s local sales team: the area sales manager (ASM) or territory sales officer. The easiest way to find them is to ask shop owners and existing distributors in your area. They meet these people every month.
Step 2: Know what they will check
- Money: enough to buy the first stock and to carry shop credit. Ask the company what the first order and running stock usually are for your area.
- Godown: dry, safe and easy for a truck to reach.
- Vehicles: a van or auto to deliver, and someone to drive it.
- GST registration and a bank account in the business’s name.
- Local knowledge: the shops you already know, and your reputation with them.
- Other brands: many companies will not appoint you if you carry a direct competitor.
Step 3: Ask the right questions before signing
Territory
which area is only yours
Margin
on what price, after what
Credit days
how long to pay the company
Claims
schemes, damage, expiry
Returns and exit
what happens if it ends
- Territory: which area or which shops are yours alone? What if another distributor sells there?
- Margin: your margin on which price, and is it before or after schemes?
- Credit: how many days do you get to pay the company? Advance payment or credit?
- Claims: how are scheme, damage and expiry claims made, and how fast are they paid?
- Targets: what is the monthly target, and what happens if you miss it?
- Exit: if the agreement ends, does the company take back unsold stock?
The answers decide whether the business makes money. A good margin with slow claim payments and short credit can still leave you short of cash. See how a distributor works out real profit.
Step 4: Watch out for fake offers
There are many fake “distributorship” offers in ads, websites and phone calls using well-known brand names. They usually ask for a registration, approval or security fee before anything else. Before paying anyone:
- Check through the company’s official website or office, not a number from an ad.
- Meet the company’s sales staff in person.
- Never pay into a personal account or an account in a name that is not the company’s.
Step 5: Be ready from day one
Once appointed, the first three months decide how the company sees you. Have your shop list, beats, billing, credit rules and stock routine ready before the first truck arrives. See starting an FMCG distributorship: the first 90 days.
How Mulberry Sales helps
Mulberry Sales is the software side of running a distributorship once you have one: billing, van sales, stock and shop credit on one system, priced per business rather than per salesman. A new distributor can start on a small plan and move up as the vans and salesmen grow. See FMCG distribution software.
Questions people ask
How do I get a distributorship from an FMCG company?
Find out who the company's area sales manager is for your town, usually by asking existing distributors or shop owners. Meet them with your details ready: godown, vehicles, money you can invest, GST registration and the shops you already know. Companies appoint distributors when they need coverage in an area, so ask which areas are open.
What does a company check before appointing a distributor?
Usually the money you can put in, a suitable godown, delivery vehicles, a GST registration, your experience and reputation in the local market, and whether you already carry competing brands.
How do I spot a fake distributorship offer?
Be careful with offers that come through ads or calls asking for a registration or 'approval' fee to be paid into a personal or unfamiliar account. Check directly with the company through its official website or office, and meet its sales staff in person, before paying anything.
Found this problem in your business?
Don't estimate it. Run one van on Mulberry Sales for 14 days with your own shops, products and salesman, and measure it. One price covers your whole business, not each salesman.
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