How Do Distributors Work?

Many founders assume a distributor will “sell” their product into new stores, many often ask “how do I get my products into UNFI?”. In reality, distributors move product; retailers decide what moves. Your first job is to convince a retailer to list you. Only then does the distributor step in; first to supply that retailer, later to make your item visible to its broader customer base. Understand that sequence and you will avoid costly detours.

What a Distributor Actually Does

A distributor is a logistics and service partner. Core functions include:

  • Warehousing and inventory management

  • Order aggregation from many retailers

  • Case-pick or broken-case fulfillment

  • Transportation and delivery on defined routes

  • Accounting services such as invoice consolidation and deduction handling

Sales teams exist, but they earn by moving cases for current accounts rather than pitching new ones. Treat them as velocity partners, not business-development reps.

The Retailer Comes First

Distributors buy items that are already authorized in a retailer’s assortment. Your path:

  1. Secure the retailer listing. Present all documents—sell sheet, pricing, proofs of liability insurance—directly to the category buyer.

  2. Provide the distributor with the retailer’s confirmation. This unlocks item setup in the distributor catalog.

  3. Submit opening orders. The distributor now buys pallets from you and ships cases to the retailer’s DC or store.

No retailer authorization; no distributor pickup.

Onboarding Sequence: From PO to First Delivery

  • Item setup: GTIN, dimensions, pallet pattern, temperature class.

  • Cost file upload: Delivered cost, brackets for volume, promotional rates. Our pricing guide helps here!

  • Label review and slot assignment: The distributor ensures it can scan, store, and ship your cases without rework.

  • Inbound appointment: You deliver to a designated warehouse; missing the window can trigger fines.

  • Outbound to retailer: Once stock arrives, the distributor ships against the retailer PO. Expect a one- to two-week lag at minimum.

When “Turn-On” Happens

After the first retailer is serviced, your item becomes selectable by any other retailer using that distributor—subject to their own category reviews. This passive availability is helpful, yet you still need to pitch each new buyer. Think of it as removing friction rather than creating demand.

Common Misconceptions

  • “Distributors are my sales channel.” False; they are a logistics channel.

  • “Once I’m in, growth is automatic.” Only if velocity justifies shelf space.

  • “They will market my brand.” Most charge extra for ads, data, or merchandising.

  • “Free fills guarantee success.” They speed trial but erode margin if repeated without ROI tracking.

Cost and Margin Impact

Distributor fees sit between 12 % and 28 % of wholesale, depending on temperature control, case size, and service tier. Budget for:

  • Freight differentials: You pay to ship to multiple DCs, not one.

  • Promotional accruals: Case discounts, bill-backs, and scan-downs.

  • Deduction management: Shortages, damage, and label compliance fines.

Mark these costs early in your pricing model; see Cost-to-Serve vs. Traditional Margin Pricing for a full walk-through.

How to Get My Product Into UNFI

You will see blogs that promise a simple “submit here” path; the reality is more nuanced. UNFI will review new suppliers through three gates:

  1. Retailer-driven demand
    If you already have a retailer letter of authorization, UNFI treats setup as a service request; this is the most reliable route.

  2. UNFI Next incubation
    Early-stage brands can apply through the UNFI Next portal; acceptance rates are low and proof of velocity in other channels still helps.

  3. Supplier Portal / RangeMe submission
    Anyone can complete the online profile, upload sell sheets, and list items. Success depends on a buyer championing the item internally; without retailer pull, the odds are slim.

Six Steps That Improve Your Odds

  1. Validate demand first
    Run market research and prove turns in independents or online before approaching UNFI.

  2. Package a clear retailer win
    Present real shelf economics: margin, SRP fit, trade support, and freight terms.

  3. Complete the SSA packet accurately
    Errors in GTIN, pallet pattern, or insurance certificates cause weeks of delay and added fees.

  4. Negotiate inbound logistics early
    Decide on prepaid versus collect, identify initial DCs, and cost those lanes into your pricing model.

  5. Budget slotting, free fills, and promo accruals
    Treat them as launch investments; tie each spend to a velocity goal and track in your trade calendar.

  6. Assign a deductions owner
    Unattended chargebacks erase margin; dispute weekly inside the UNFI Supplier Portal.

Direct Submission Reality Check

Submitting through RangeMe or the Supplier Portal can lead to an introductory call, but the buyer will still ask:

  • Which retailers already carry you?

  • What are your verified weekly turns?

  • Can you ship full pallets into multiple DCs on time?

If your answers are weak, expect a quick “not at this time.” Use the portal as a visibility tool, not a shortcut.

Need a deeper dive into fee structures? See our page UNFI and KeHE: A Guide to Navigating Distribution before you lock in pricing.

Questions to Ask—and Questions to Park

Lead With These

  • What are your inbound shipment minimums and preferred pallet configurations; do they change by temperature class?

  • Which of your current retail customers match my target profile; how often do they review new items in this category?

  • What documentation do you require for item setup, and how long does the process usually take?

  • How do you measure and report on-time delivery and fill-rate performance to brands; can I access that data?

  • Which deductions or compliance fines most often trip up emerging brands; what best practices help avoid them?

  • How do you support promotions—scan-downs, off-invoice, MCB—at store or DC level; what lead times do you need?

Save These for Later

  • Can you get me into [insert dream retailer] next quarter?

  • Will you guarantee velocity or minimum case sales?

  • How soon can I go national with you; can you waive all slotting or setup fees?

  • Will you stock my item before any retailer issues a PO?

  • Can you hold extra inventory for free while I “see how things go”?

Start with operational fit and shared expectations; leave big growth asks until velocity data proves you are worth the push.

Checklist: Are You Ready for a Distributor?

  • Retailer authorization in hand

  • Case pack that survives a multi-stop route

  • Minimum three turns per quarter at shelf price

  • Trade-spend budget and tracker

  • Cash-flow buffer for 45- to 60-day pay terms

If you cannot tick each box, keep selling direct or work with a regional broker first.

Next Steps

Strong velocity with one retailer is the fastest way to earn broader distribution. When you are confident in turns and trade-spend discipline:

  • Review UNFI and KeHE: A Guide to Navigating Distribution for buyer timelines

  • Revisit What Distributors Actually Want From Emerging Brands to refine your pitch deck

  • Model true landed cost with our Interactive Pricing Calculator

  • Study Trade Spend, Chargebacks, and Margin Pressure Explained to avoid surprises

Master the retailer-first mindset; distributors will follow.