Distributor, importer or marketplace: which route into Germany fits you?
There is no best model. A distributor means little risk but less control. A marketplace is fast to start but hard to make profitable. With an agent or a market-development partner you stay close to your customers, but you do more yourself. The table below helps you choose.
As a buyer, I bought from all of these models: distributors, importers, agents and brands selling directly. Each one can work well, and each one can go wrong.
The model mattered less to me than one question: is someone in Germany responsible for this brand, and does that person know the product and the prices?
Five routes, side by side.
Simplified, because every contract is different. But this is how the models usually look for a consumer-tech brand.
Buys, stocks, sells to retail
Stock: The distributor buys and holds it.
Customer relationship: Mostly with the distributor.
Cost logic: Their margin on top of your price. No fixed fee.
Price control: Limited. They set their prices to retail.
Risk for you: Low cash risk, but you depend on one partner.
Best for: Brands with a clear range that fits an existing portfolio.
Brings goods in, often sells too
Stock: The importer buys and holds it.
Customer relationship: With the importer, sometimes shared.
Cost logic: Margin, sometimes plus logistics fees.
Price control: Medium, depends on the agreement.
Risk for you: Low cash risk. Often good at logistics, weaker at sales.
Best for: Brands that need help with import, paperwork and stock, and sell separately.
Sells, does not stock
Stock: You, or your importer.
Customer relationship: With you. The agent brings you to the buyer.
Cost logic: Commission on sales, sometimes a small retainer.
Price control: High. You set prices.
Risk for you: You carry stock, logistics and service.
Best for: Brands with logistics in Europe that want direct contact with retailers.
Amazon.de, Kaufland, Otto
Stock: You, or the marketplace fulfilment service.
Customer relationship: Mostly with the marketplace.
Cost logic: Sales fees, fulfilment and advertising.
Price control: High in theory, but competition pushes prices down.
Risk for you: Stock, advertising cost, reviews, account problems.
Best for: Products that customers search for and compare online.
Local presence and sales development
Stock: None. Works with your importer, distributor or logistics partner.
Customer relationship: With you. The partner builds it on your behalf.
Cost logic: Retainer or project fee, often with a success-based part.
Price control: High. Price policy is set together.
Risk for you: Fixed cost before sales arrive. Needs a partner you trust.
Best for: Brands that want to keep control and need someone in Germany to find buyers and partners.
Who holds the stock, and who knows the customer?
The partner who holds stock carries the risk, so they want margin and control. The more you keep yourself, the more you decide, and the more work you have.
Less risk, less control
Distributor and importer. They buy, they hold stock, they sell. You depend on how hard they push your brand.
More control, more work
Agent, marketplace, market-development partner. You keep prices and relationships, and you organise stock, service and returns.
As a buyer, I liked it when a brand had a local person I could call, even if the goods came through a distributor. The two do not exclude each other.
A simple decision guide.
Find the line that sounds most like you.
- You want little risk and have a clear, small range. Start with a distributor who already sells to the retailers you want. Agree on targets and reporting.
- You have stock in Europe and want retail relationships of your own. A sales agent or a market-development partner, with a logistics partner behind it.
- Your product is searched for online. Start on a marketplace, but keep the price stable so retail stays possible later.
- You need someone to handle import and paperwork first. An importer, combined with someone who actually sells.
- You are not sure the market wants your product. Do a small pilot with a few buyers before you sign anything long-term.
Pick the route you can actually manage.
The model that looks best on paper does not always work. A brand without stock in Europe cannot sell directly to retail next month. A brand that wants its own customer contacts should think twice before giving all of Europe to one partner. If you want to talk about which route fits your product, I am happy to help, also when my answer is “start smaller”.
Marco PenningFounder, LUMVEO · Hamburg
Take the 2-minute check ↓Which route fits you? Eight questions, two minutes.
Tell me where you are today and what you sell. I read every check myself and reply personally.
Short answers.
What is the difference between a distributor and an importer?
In practice people mix the words. Both usually buy and hold stock. A distributor mainly sells to many retailers. An importer mainly brings goods in and handles stock and paperwork, and may not have a strong sales team. Ask what they really do.
Can I combine several models?
Yes, most brands do. A common mix is a marketplace for online sales plus a distributor or agent for retail. What matters is one clear price policy for all of them.
Is a marketplace enough to enter Germany?
It can be a good start for products customers search for online. But it gives you little contact with retail buyers and little control over the customer relationship. Many brands later add a retail route.
Which model is the cheapest?
A distributor has no fixed cost for you, but takes margin and some control. A sales agent or market-development partner costs fees or commission, but you keep the customer contact. Compare the total cost at the volume you expect.
This is my experience and view from the buying side, not legal advice. Contracts and obligations differ by model, so check the details with a specialist before you sign.