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Sole selling agent

sivaram (Asst Mgr-Taxation) (6918 Points)

11 January 2012

Waht is the difference between a sole selling agent and a Whole sale Distributor for that area?

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9 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 11 January 2012

Hello,

As per my understanding sole selling agent is a legal term in law where there is a single distributor of a product (kind of monopoly) in a particular area designated by the company/brand. In this category the word “distributor” is very important. The dealer may and may not have large quantity of a product in his possession.

However a whole sale distributor is a general term and has nothing to do with legality. It is a dealer who always procures large quantity of product for distribution. In one area there may be more than one whole sale distributor of a product.

Trust this simple explanation helps you to understand the difference.

Regards

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 11 January 2012

In other words a dealer titled sole selling agent apparently includes a whole sale distributor whereas a dealer titled whole sale distributor does not include sole selling agent because sole selling agent is not a general term to be used casually.

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 11 January 2012

Dear Ankur ji

When there are already whole sale distributors in a particular area for that product of the company then why there is a need to appoint a sole selling agent in that area

or do you mean to say when there is a sole selling agent appinted by the company in a particular area there will not be any whole sale distributor for that Product produced by the company ?

can u be little specific on this

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 11 January 2012

Kindly appreciate SSA is a wider term as compared to WSD. In the layman’s language you may consider SSA as a branch of main company, which is solely authorised on behalf of the company in a particular region to deliver goods to even WSD. Further appointment of SSA is not a compulsion for company. SSA is appointment keeping in view the administrative convenience and to handle demand of company product in a particular area.

Ideally there is no comparison between SSA and WSD. As per my understanding if for a particular area or region SSA has been appointed by the company then there is no need to put WSD bcoz retailers may fulfill their needs from SSA. However the real key in this regards remains with the manufacturer company.

Regards

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 11 January 2012

Thanks Ankur ji

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 11 January 2012

Keep sharing your doubts.

Regards

Bharat Diwan (Company Secretary) (38 Points)
Replied 25 January 2012

Dear Ankur Sir

I have a doubt. Our Company is entering into a ditributorship agreement to sell product in state of Himachal Pradesh. Please tell me whether it will count to Sole Selling Agent.

Bharat

poonam verma (Company Secretary) (191 Points)
Replied 14 June 2013

So what is the difference between sole selling agnet and exclusive distributor?

I think the difference is very minimum. So why a Co. will go to appoint a sole selling agent when it is required to take shareholders and CG approval. Why not it will appoint an exclusive dealer.