Retail Broker

A retail broker is an independent sales agent who represents your brand to retail buyers and gets your product onto shelves in exchange for a commission. The whole value is relationships. Instead of you cold-pitching a grocery chain that never answers, the broker who already knows that category buyer walks your line in for you. A broker doesn’t buy your product or hold inventory. They open doors, present your products, negotiate placement, and manage the retailer relationship, and they earn a percentage of the sales they bring in.

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Broker versus distributor

These two get mixed up constantly, and the difference is simple. A broker sells and represents but never takes ownership of your product. They connect you to buyers and manage the account, and you still sell directly to the retailer or distributor, ship the goods, and get paid. A distributor actually buys your product from you, warehouses it, resells it to retailers, and handles the logistics, taking a bigger margin because they carry the inventory and the risk. Put simply, a broker gives you doors and relationships for a commission, while a distributor gives you buying and logistics for a margin. Many brands end up using both, a broker to win the account and a distributor to service it. See retail distribution for how the pieces fit together.

What categories use brokers

Brokers are most common wherever getting a buyer meeting is the hard part, which means physical consumer products sold through brick-and-mortar chains.

Food and beverage is the biggest user by far. “Food brokers” are practically standard for getting into grocery and natural chains like Whole Foods, Kroger, and Sprouts, because grocery buying is intensely relationship-driven and regional, and the category-review cycles are almost impossible to navigate cold.

Beauty and personal care brands use brokers to reach mass and drugstore retail like Target, CVS, and Walmart.

Supplements and health, household and cleaning, pet, and general CPG all rely on brokers for the same reason. In gift, housewares, and hardware, the same role usually goes by “manufacturer’s rep” or “sales rep.”

What they charge

Brokers are usually paid a commission on the net sales they generate, and the rate depends on your category, territory, and how much work is involved.

Commission typically runs 3 to 7% of net sales. Natural and specialty products sit at the higher end, often 5 to 7% and sometimes more, while conventional grocery tends to be lower, around 3 to 5%, and high-volume channels like club and foodservice are lower still.

Retainers come into play for smaller and early-stage brands, or when the broker is building your launch from scratch. Some charge a monthly retainer, from a few thousand dollars up to $15,000 a month, either instead of or on top of commission, because a young brand with no sales yet generates little commission to live on.

Whatever the structure, get it in writing before anything starts: the commission rate, exactly which accounts are included, how “net sales” is defined, and how often you’ll reconcile statements.

How to find one

Ask other founders. The best brokers come by referral. Ask non-competing brands in your category who they use and whether they’d recommend them.

Use a broker directory. Startup CPG maintains a brokers-list database aimed at emerging brands, and distributors and trade groups can point you to reps who cover your category.

Meet them at trade shows. Industry shows like Expo West are where brokers and buyers gather, and where a lot of these relationships start.

Then interview two or three. A broker is only as good as the buyers they actually know, so ask which retailers they have real relationships with, confirm they cover your category and your territory, and check their track record with brands your size. The wrong broker with the wrong relationships is worse than none.

The process and what to expect

You start by signing an agreement that spells out the commission, the territory, the term, the accounts included, and, importantly, a clear exit clause. From there, you hand the broker your line sheet, samples, pricing, and brand story, and they present your line to buyers, book the meetings, and pitch you into category reviews. You support the effort with trade spend, marketing, and reliable fulfillment, because the broker opens the door but your product still has to sell once it’s inside.

Set expectations honestly. Hiring a broker does not make sales skyrocket overnight, and a broker can’t save a product that doesn’t move, doesn’t have workable margins, or has no demand behind it. Brokers also represent many brands at once, so the ones who get pushed are the ones who stay top of mind. Keep them engaged, build accountability into the deal with monthly performance reviews and visibility into buyer conversations, and you’ll get far more out of the relationship than a brand that signs a broker and disappears.

Frequently Asked Questions

What is the difference between a broker and a distributor?

A broker represents your brand and sells it to retail buyers for a commission, but never owns your product. A distributor buys your product, warehouses it, resells it to retailers, and manages logistics, taking a margin because it carries the inventory. A broker gives you relationships and doors; a distributor gives you buying and fulfillment. Many brands use both.

How much does a retail broker charge?

Usually a commission of 3 to 7% of net sales, with natural and specialty categories at the higher end and conventional grocery lower. Smaller or early-stage brands often pay a monthly retainer instead of or on top of commission, ranging from a few thousand dollars up to around $15,000 a month, since a new brand generates little commission at first.

How do I find a good retail broker?

Start with referrals from non-competing brands in your category, use directories like Startup CPG’s brokers list, and meet reps at trade shows such as Expo West. Then interview a few and check which retailers they genuinely have relationships with, since a broker is only as valuable as the buyers they can actually reach. Confirm they cover your category and territory.

Do I still need to market my product if I have a broker?

Yes. A broker opens doors and manages buyer relationships, but your product still has to sell off the shelf once it’s placed. You’ll need trade spend, marketing, and strong sell-through to keep the account, and a broker cannot rescue a product that has no demand, weak margins, or poor velocity.

Sources

• Mass.gov, “Sales, Brokers, Distribution, & Trade Shows”. The core distinction that brokers represent your product for a commission while distributors buy it.
• Tim Forrest, “Complete Guide to Finding and Working With Food Brokers”. Commission ranges of 3 to 7% by category and territory.
• Startup CPG, “Brokers List Database for Emerging Brands”. Commission-versus-retainer models and retainers up to $15,000 a month for small brands.
• MorningAI, “What Is a Food Broker?”. Commission norms and how to vet and hold a broker accountable.