Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.

For sales to the government, a local agent or representative is legally required, and is often a practical requirement when first entering the Ecuadorian market. Until local sales and brand recognition are sufficiently established to support a direct presence, most companies minimize risk and capital by selling to or through an Ecuadorian representative. U.S. exporters with a few local customers often sell directly from the U.S. or through orders taken by a local or regional representative.

Ecuadorian buyers prefer to purchase directly from the manufacturer to remove intermediaries and lower product cost. For sales of machinery and equipment, the provision of parts and after-sales service is a key competitive factor. Likewise, buyers appreciate that communication is carried out in Spanish.

Quito and Guayaquil are the major distribution centers for imported products, while Manta, Cuenca, and Santo Domingo de los Colorados serve as secondary national distribution centers. Virtually all distributors cover the entire country with their own sales force, and most have branches and warehouses in each major city. Options for distribution in Ecuador include:

Distributors are commonly medium- to large-sized firms that purchase and import relatively large quantities from foreign companies, then distribute wholesale within the country. Distributors typically maintain local inventories and set local prices independently of foreign manufacturers. Distributors occasionally place orders with foreign manufacturers for direct delivery to in-country customers.

Commissioned agents are usually specialized firms or individuals who take orders in Ecuador for foreign goods by means of a well-trained and experienced sales force. Agents are paid a commission by the company filling these orders. Occasionally, agents may import goods with their own funds for resale in the local market.

Direct importers are generally large manufacturing companies and government agencies purchasing equipment or materials for their own use, or large retail chains with national distribution outlets. Purchases are normally made directly from the manufacturer.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.