January 30, 2024

Two Methods Commonly Used to Distribute E-Commerce Purchases to Customers

Ecommerce is a system that makes it possible for consumers to make purchases on the Internet. It allows businesses to serve a wider market than is possible through a conventional brick-and-mortar store, increasing their potential client base and making it easier for them to manage their business remotely. It also gives them a chance to generate revenues before their regional rivals.

There are two methods commonly used to distribute e-commerce purchases to customers: direct and indirect. The direct method involves a company selling directly to its own customers through a physical shop, online via an ecommerce website designed by a web design firm, or by mail or phone. This channel is often best for routine, low-priced products such as hand soap or paper towels, where customers aren’t likely to be loyal to a particular brand.

Indirect distribution channels involve a company selling its products to intermediaries such as wholesalers or retailers who then sell them to end users. The vendor may use a selective distribution strategy, in which case it chooses certain intermediaries to stock its products based on criteria such as geographic region or service and support capabilities. It may also opt for exclusive distribution, in which case it only sells its goods through the selected intermediaries.

Other examples of indirect channels include catalogs, where the manufacturer gathers products together in a book or other publication for sale and sends them to consumers by post, and call-in sales, which involves companies taking orders by phone and email. These channels are less effective in the age of e-commerce, but they still exist because older customer bases are familiar with them.

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