When a factory posts "diaper distributor wanted", it is not looking for any reseller with a truck. We are looking for a partner who can actually carry the category in a market — stock, service retail, and defend the brand. If you are the one answering that post, it helps to know what we screen for before we sign, because the factories that last are the picky ones.
Quick definitions: Exclusive territory means you are the only authorized distributor there. Minimum annual volume is the floor you commit to buy. Distributor margin is your resale markup over the factory price. Marketing fund is money set aside to build the brand locally. Distribution agreement is the contract that sets all of the above.
Exclusive territory versus open market
Most distributors ask for an exclusive territory, and we grant it when the numbers justify it. The trade-off is simple: you get protection from other resellers undercutting you, and we get a commitment that the market will be worked, not parked. An open-market deal is easier to start but leaves you exposed the moment another buyer finds our price list. Decide which you want before you negotiate, because the two have different volume floors.
Minimum annual volume — and why we ask
A diaper line is not a print-on-demand product. We reserve extruder and converting slots weeks ahead, and the fluff pulp and SAP are bought against a forecast. A minimum annual volume lets us plan the line and hold your pack artwork. It is not a trap — it is how a factory avoids promising the same slot to three people. If a supplier never asks for a volume, ask yourself whether they have a real line or are just brokering someone else's.
Margin and the marketing fund
Your distributor margin is the gap between our price and your shelf price, and it has to cover freight, warehousing, sales, and returns. What surprises new distributors is the marketing fund: a share of the deal set aside for listings, sampling, and local promotion. We do not hand you a brand and walk away; the fund is how we build it with you. Clarify who controls it and what it can be spent on before you sign, or it becomes a silent point of friction later.
The distribution agreement in plain words
The contract is shorter than people fear. It names the territory, the annual volume, the first order, the payment terms, who owns the IP and the pack design, and how either side exits. The clause buyers skip is the quality clause — it should say the goods are judged against the golden sample, not a mood. If a factory refuses to put the spec and the sample reference in writing, that is your exit signal.
What we expect from a distributor, on one page
| Expectation | Typical ask | Why it matters |
|---|---|---|
| Annual volume | Agreed floor per year | Line and material planning |
| Territory | Exclusive or open | Conflict with other resellers |
| First order | 1–2 containers | Prove the channel |
| Payment | Deposit + balance | Cash flow on both sides |
| Marketing fund | Agreed local share | Build the brand together |
Summary: the short version for distributors
Factories want a partner who works the market, not just a buyer who parks stock.
Exclusive territory protects you but carries a higher volume floor.
Minimum annual volume lets the line plan pulp and SAP — it is normal, not a trap.
Your distributor margin must cover freight, warehouse, sales and returns.
The marketing fund is how the brand is built with you — agree who controls it.
Put the spec and golden sample in the agreement, or walk away.
Frequently asked questions
Is an exclusive territory worth the higher volume commit?
If you can hit the floor, yes — it stops other resellers undercutting you on the same pack. If the floor scares you, an open-market deal is the honest start.
What is a fair distributor margin on diapers?
Enough to cover freight, warehousing, sales and returns after the factory price. The exact number depends on your channel and freight; build it from landed cost, not from the ex-works price.
Who pays for local marketing?
Usually a shared marketing fund agreed in the distribution agreement. Clarify the share and what it can be spent on before signing, so it does not become a silent friction point.
What clause do distributors most often skip?
The quality clause. It should say goods are judged against the golden sample and the written spec. If the factory refuses to put that in writing, treat it as an exit signal.
Editorial transparency: Written from the factory side by a Fujian export team that runs distributor accounts. Volume and margin ranges are typical and should be confirmed against your market and freight. Last fact-checked: 2026-07-21.
