Channels of Distribution

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Channels of distribution are tasked with the responsibility of ensuring that the product is delivered to the consumer. This is by bridging the gap between the producer and the people who will use it, even if the parties are thousands of kilometers apart. The channels of distribution are categorized into three sections that enable facilitate this process. These are; the producer of the product, the consumer, and intermediaries who fall under wholesalers and retailers. Through the functions conducted within the channels such as; transactional functions: where there is the buying and selling and also the estimation and assumption of risk, logistical functions: where there is the assembly of products, storage, and sorting and eventually their transportation into designated markets, facilitating functions: where the financing and dissemination of information takes place and channel coordination and leadership, there is the smooth flow of the products to the customers and eventual compensation to the producers. Comparison between brick and mortar and online retail strategies Location and Marketing The most convenient aspect of having a brick and mortar business is the presence of a physical location which enables the business to market itself as compared to an online business where you have to do vigorous marketing or else no one will know of the existence of your services or products. Also, having a physical address will boost the legitimacy of business. Startup Costs The brick and mortar business has higher startup costs as compared to an online business due to the rent and salaries if the business has employees. Time Owners of brick and mortar business usually spend more

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