Why would intermediaries want to be exclusive distributors for a product?

Question

    Why would intermediaries want to be exclusive distributors for a product? 

Answer 1

Take a look at each point in the "supply chain" from producer to consumer:

   1.  the intermediately may have production/printing/manufacturing facilities that can accommodate a new product, so the inventor/designer asks them to make it and the intermediary wants "exclusive rights" to manufacture/distribute it.  If Amazon allows me to self-publish a book that they will print and sell (as the distributor) on their web site, I should realize that they are faster/better/cheaper than me.
 
   2.  The intermediary may be a better distributor with pre-existing customers. If Netflix wants exclusive rights to sell/distribute the movie I'm making, I'm delighted!  I can't compete with Netflix.
 
   3.  There are lots of "knock-off" products (products that look a lot like the expensive version but are cheaply made) and being an exclusive distributor ensures the legal right to distribute a product (note:  did you know that some foreign countries do not enforce our copyright laws very well and that you can buy an expensive book printed book there for a fraction of the usual price?).
 
    4.  A exclusive distributor makes profit as the manufacturer makes profit.  How would you like to be the exclusive distributor for Microsoft's Windows 10?  -- naw, pick another example.

 

    5.  The customer gains confidence in the intermediary and recognizes the company name and become more likely to buy other products from them.  This is one way that Wal*Mart is so successful.

Answer 2

Perhaps because then everyone in search of the product would need to go through them, eliminating any form of competition, and allowing them a monopoly on whatever product they are the sole distributor for.