How to find wholesale sales agents for your brand, what commission they get, what to put in the agreement and how agent law works in Europe.
In this article
A good sales agent can open doors that would take your own team years to reach. They already know the shop owners in their region, they visit them several times a season, and they bring your collection to trade shows and showrooms. In return, they earn a commission on what they sell.
Working with agents also comes with costs and rules that many brands only discover when something goes wrong. In this guide, we cover what a wholesale sales agent does, how to find a good one, what commission is normal, what to put in your agreement, and what agent law in Europe means for your brand.
What does a wholesale sales agent do?
A wholesale sales agent, also called a commercial agent or independent sales rep, sells your products to retailers in a region or market on your behalf. They don't buy your stock. They take orders in your name, you deliver to and invoice the retailer, and the agent earns a commission on those orders.
Many agents represent several brands that complement each other, for example a few home and living brands that sell to the same gift shops. That's what makes them valuable: one visit from the agent puts your brand in front of a buyer who already trusts them.
Sales agent | Distributor | Your own sales rep | |
|---|---|---|---|
Who owns the stock? | You | The distributor buys it from you | You |
Who invoices the retailer? | You | The distributor | You |
How are they paid? | Commission on orders | The margin between its purchase and sale price | Salary, often with a bonus |
Control over prices and customers | High | Low | Full |
Fixed costs | Low | Low | High |
When does working with an agent make sense?
You want to grow in a new region or country where you don't know the retailers yet.
Your retailers expect a personal visit or want to see the collection before they order, as is common in fashion, home and living, and gifts.
You sell seasonal collections and need someone at trade shows and in showrooms during the buying season.
You're not ready to hire your own sales team, but want more than online orders.
An agent is less of a fit when most of your orders are small reorders from existing customers, or when your range is too narrow to make a visit worthwhile. In that case, a self-service B2B Portal and the other ways to find new retailers often do more for less.
How to find a good sales agent
The best agents are busy and choosy about the brands they take on, so it pays to look in the right places.
Agent associations and directories
In most European countries, agents are organised in associations that help brands find representation:
Germany: the CDH, the umbrella association for commercial agents (cdh.de), and handelsvertreter.de, where brands can post an offer for agents.
Netherlands and Belgium: VNHI, the largest association of agents in the Benelux (vnhi.nl), which has a section where brands can look for an agent.
France: APAC (apacfrance.com) and FNAC (agentcommercial.fr).
United Kingdom: the Manufacturers' Agents' Association (themaa.co.uk), which runs agent searches for brands for a fee.
Most of these associations are members of IUCAB, the international umbrella organisation of commercial agents (iucab.com), which is a good starting point for other countries.
Trade shows and showrooms
Agents scout new brands at trade shows, and many run their own showroom where retailers come to place orders during the buying season. Walk the halls with a list of agencies that carry brands like yours, and ask other exhibitors who represents them in other regions.
Ask your retailers
Your best retailers know which agents are good, because those agents visit them every season. Ask who they like working with, and which agents carry brands that sit well next to yours.
How to vet an agent
Their portfolio. Look for complementary brands, not competing ones. An agent who already carries three candle brands won't push yours.
Their retailers. Ask which shops they visit in their territory, and how often.
Their results. Ask for references from other brands, and what turnover they've built for them.
How they work. Do they have a showroom? Which trade shows do they attend? How do they take orders and report back to you?
How much commission do sales agents get?
There is no official benchmark, and rates are always negotiated. In the Dutch clothing and textile sector, the agents' association NVKT puts typical commission at 7 to 12% of the order value, as quoted by the Netherlands Chamber of Commerce (KVK). Use that as a rough guide rather than a rule: the right rate depends on your category, your margins and what the agent does for you.
These are the things that push the rate up or down:
Your margin. Commission comes out of your wholesale margin, so build it into your wholesale pricing from the start.
New versus existing accounts. Some brands pay a higher rate on new retailers the agent brings in than on accounts they already had.
Showroom and trade show costs. Agents with a showroom or a stand at trade shows may charge a monthly fee on top of their commission, often in exchange for a slightly lower rate.
Territory and exclusivity. An exclusive region is worth more to the agent, and usually comes with sales targets.
When is commission paid?
Many brands pay commission once they've confirmed the order. Others pay only after delivery, or once the retailer has paid. Under EU rules, commission is due at the latest when the retailer has paid, and must be paid out by the end of the month after the quarter in which it became due. Agree the basis clearly, for example the net invoice amount excluding VAT, shipping and returns. If you offer retailers payment terms, paying commission after the retailer pays protects you against bad debt.
Watch out for online reorders
This is the point many brands miss. If you give an agent an exclusive territory or a specific group of customers, EU law entitles them to commission on orders from that territory or group, even when they weren't involved in the sale. That can include the reorders retailers place themselves in your B2B Portal. In some countries, such as Germany, you can agree otherwise in the contract, so decide upfront which accounts stay with your own team (house accounts) and whether online reorders count towards commission.
What to put in an agent agreement
In the EU, both you and the agent can always ask for a signed, written agreement. Make sure it covers at least these points:
Territory and customers. Which region or retailers the agent covers, whether that's exclusive, and which accounts stay with you.
Products. Which collections or product lines the agent may sell.
Commission. The rate, what it's calculated on, when it's paid, and whether online reorders count.
Prices and discounts. Whether the agent may offer discounts. Fixed customer-specific price lists prevent discussions afterwards.
Targets and reporting. What you expect per season, and how the agent reports visits and sales.
Costs. Who pays for samples, showroom space, trade shows and travel.
Notice period and termination. How either side can end the agreement, within the legal minimums.
Non-compete. Whether the agent may represent competing brands, during and after the agreement.
Agent law in Europe: what brands should know
Agent law in the EU is based on the Commercial Agents Directive (86/653/EEC). It protects agents more than most brands expect. Three points matter most:
Notice periods. For open-ended agreements, the minimum is one month in the first year, two in the second and three from the third year. Several countries require longer.
Compensation at the end. When the agreement ends, the agent is usually entitled to an indemnity or compensation for the customers they brought you. In most countries this is capped at one year's average commission, and the agent has to claim it within a year.
Non-compete. A non-compete clause must be in writing, limited to the agent's territory and products, and can last at most two years.
Country | Notice period | Compensation when the agreement ends | Non-compete |
|---|---|---|---|
Germany | 1 month in year 1, 2 in year 2, 3 in years 3–5, 6 months after 5 years | Ausgleichsanspruch (§ 89b HGB): up to one year's average commission over the last five years. It can't be excluded in advance. | Max. 2 years, and you must pay the agent compensation for that period |
Netherlands | If nothing is agreed: 4 months, 5 after 3 years, 6 after 6 years | Klantenvergoeding (art. 7:442 BW): up to one year's average pay over the last five years | Max. 2 years |
France | 1 month in year 1, 2 in year 2, 3 from year 3 | Indemnité de fin de contrat (art. L134-12): no legal cap; courts often award around two years of commission | Max. 2 years |
Belgium | Rises by 1 month per year, up to 6 months from year 6 | Uitwinningsvergoeding: up to one year's average pay over the last five years, plus any proven extra damage | Max. 6 months |
In most countries, no compensation is due when the agent ends the agreement without good reason, or when you end it because of serious misconduct by the agent. Rules change and every situation is different, so always have your agreement checked by a lawyer in the agent's country. This overview is not legal advice.
How to set your agents up for success
An agent can only sell what they can show, price and order quickly. Before the season starts, give them:
Samples and a digital collection. A complete, up-to-date line sheet or lookbook with photos, wholesale prices, RRPs and minimums.
The right price for every retailer. With customer-specific price lists, the agent never has to guess or call you about a discount.
Live stock and delivery dates. So they don't sell what you can't deliver, and can take pre-orders for the next season.
A fast way to write orders. Paper order forms and spreadsheets lead to typing errors, lost orders and days of delay. More on that below.
Clear reporting. Agree how you share sales per retailer, so both of you can see what's working.
And don't forget the visit itself: our tips on closing more orders during sales visits work for agents too.
Give your agents a sales app instead of paper order forms
Most friction between brands and agents comes from orders: written on paper in a shop, typed into a spreadsheet at night and emailed days later. The Orderchamp Sales App solves that.
Their own account. Each agent gets their own login, restricted to the retailers assigned to them.
Your full catalogue, even offline. Agents can show products, create digital lookbooks and write orders on an iPad or iPhone, in a shop, a showroom or at a trade show, with or without WiFi.
The right price every time. Each retailer's own price list and terms are applied automatically.
Orders straight into your system. Orders land in the same backoffice as your B2B Portal, and sync from there to your ERP or warehouse.
Between visits, retailers can reorder on their own in your B2B Portal, so the agent can focus on new accounts and bigger seasonal orders. Tea brand Arelo, for example, creates its trade show orders on the spot in the Sales App instead of on paper. Read more about the Sales App for sales teams.
Final thoughts
A good agent can be the fastest way into a new region, as long as you choose carefully, agree commission and territory in writing, and know the rules before you sign. Give them the tools to sell and order quickly, and they'll spend their time with retailers instead of paperwork.
Working with agents or reps? See how the Sales App works or book a demo.
Frequently asked questions
What is the difference between a sales agent and a distributor?
How much commission does a wholesale sales agent get?
Do sales agents get commission on online orders?
Can I end an agreement with a sales agent?
Where can I find sales agents for my brand?
How do sales agents take orders?