Definition, Meaning & Synonyms

distributorship

Noun

/ˌdɪstrɪˈbjuːtəʃɪp/

Definition

A distributorship is a business arrangement in which an individual or company (the distributor) is granted the rights to distribute a product or service in a specific area or market.

Examples

The distributorship of luxury cars requires significant investment.
After reviewing the contract, she decided to pursue a distributorship in beauty products.
The company expanded its reach by establishing new distributorships around the country.

Meaning

Distributorship allows the distributor to sell goods or services on behalf of another company, usually under specific terms and conditions defined in a contract.