Distribution Flashcards
1
Q
What are the five main distribution channels?
A
- Traditional physical channel
- Direct to retailer
- Be your own retailer
- Direct online
- Online retail
2
Q
What is the traditional physical channel?
A
Small producers sell to wholesalers who sell to small independent shops
Normally used by small retailers/producers who can’t afford to sell/buy individually
3
Q
What is direct to retailer?
A
Larger producers sell directly to retail chains
4
Q
What is direct online?
A
The producer sells directly to the consumer
Ensures the producer gets 100% of the products selling price
The producers high profits allows them to invest more into advertising, product development etc
5
Q
What is online retail?
A
Via online platforms such as eBay
Used by smaller firms who can’t afford their own platforms
6
Q
What is distribution?
A
How a business gets its products to the consumers
