Distribution Flashcards
What is distribution?
The delivery of goods from the producer to the consumer
What is a distribution channel?
The route taken by a product from the producer to the customer
What are wholesalers?
They buy from manufacturing and sell to retailers
What are important factors when choosing the right distribution channel?
-nature of product
-cost
-the market
-control
What is a producer?
A business that makes, grows or supplies goods or commodities for sale
eg a farmer
What is a pro of selling online?
Can keep all the profits it sells online rather then having to give some profits to retailers, therefore making greater profit while maintaining a low cost base due to not paying rent
What are the cons of selling online?
-shipping issues
-cant try before buy
-need suitable tech
