What exactly is the product distribution? Distribution, in broad terms, is the manner by which you make your goods or services easily available to potential buyers. In the most simple possible distribution setup, you directly sell your goods to the consumer. There aren’t any middlemen, no stores, no warehouses, and such. That is the best route for small businesses – the product simply comes out of the plant and becomes part of the hands-on life of the consumer.
The distribution of goods is a key factor in marketing, especially when you want to build customer loyalty. Without an efficient distribution system, there is a good chance that many of your customers will drop your products in favor of new ones that you have introduced. If your product distribution strategies aren’t working, it’s because you aren’t taking full advantage of all available channels of distribution. A number of distribution routes exist for every product type and niche, which means you need to consider them all before choosing the one that is best for your situation.
Some distribution strategies are easier than others. Direct product distribution involves only contacting the individual consumer in order to obtain the product. For example, you might sell books by mailing each book directly to a customer in an envelope with a receipt so they can keep the book. Another popular book distribution strategy involves building a distribution network consisting of warehouses that ship goods to various establishments. The company that owns the warehouses often maintains a distribution network of their own that allows them to serve multiple outlets at the same time. Some other popular product distribution models include wholesaling and dropshipping, which involves making sure only a single associate in the chain buys from the distributor.
There are many other product distribution strategies, depending on how large your niche is, the amount of competition, etc. One example of a relatively simple distribution strategy would be offering retail customers a chance to purchase an eBook directly from the manufacturer or the retailer themselves. This allows retailers the opportunity to increase their profit margin, which in turn increases the value of the product. Some retailers have even used this tactic to increase profitability and lower their financial risk by decreasing stocking and general overhead costs. Selling eCommerce orders is another common strategy for increasing profit margins. Dropshipping simply means that the product being sold is kept in inventory but not sold to customers until they place an order with the dropshipper, who then ships the product directly to the customers.
All of these strategies come with varying levels of risk and failure. Direct product distribution strategies have some of the highest risk factors because of the fact that you are directly contacting the consumers. On the other hand, mass distribution strategies, such as dropshipping, have very low-risk factors but also very high potential failure. Most people tend to opt for the lowest risk strategies, as they are usually the most convenient. If you’re going to do mass distribution, you’ll need a lot of customers, and the biggest advantage of using dropshipping is that you don’t need to worry about keeping your product in stock.
When choosing a product distribution strategy for your small business, the first thing you should consider is whether you want to provide your customers with a physical product or whether you want to sell them the idea. There are advantages and disadvantages to each option. For example, if you provide physical products, it’s important that you can deliver them to your customers quickly and easily. Otherwise, your customers may decide to patronize a competitor who has access to better resources and faster delivery methods.
Other product distribution strategies are more affordable, especially when compared to traditional mass-market distribution. This type of strategy is called “partnerships.” For instance, with an existing distribution network, you could form a partnership and distribute products made by your partner. The partnership could also allow you to provide your customers with samples of your product at an additional cost. If you don’t have a distribution partner, another way you could increase your sales is to find an affiliate marketer. These people drive traffic to affiliate links, which increases the number of people who see your brand.
Product distribution involves several different strategies, depending on how large your retail store network is and what types of products you are distributing. Many small businesses choose to keep inventory costs as low as possible since this lowers distribution costs. Many other strategies exist, including contract distribution with other companies.