What is distribution?

Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to the next link in the supply chain, typically either a distributor, retailer or consumer.

The other three parts of the marketing mix are product management, pricing, and promotion.

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.  Read more here.

Articles

2008-02-28 09:56

Re-assessing drop shipping—again

  Back in the early days of online retailing, the term “virtual merchant” meant just that—such retailers were all but merchants. Many stocked no inventory and had no customer service reps. That was the market that Commerce Hub Inc. targeted. Founded in 1997 by Frank Poore, an ex-computer...
2008-02-28 09:51

Successful Drop Shipping

  • Shop around for the drop ship company that best fits your needs. Make sure you find out all the costs involved with each company so you can calculate your profit margins accurately. • Just because you find the wholesale drop shipping company that is the best price certainly does not mean...
2008-02-28 09:50

Distribution Decisions: Drop-Shipping vs. Inventory vs. Fulfillment House

Internet product sales are easy," said Bob Simple, when he first set up Bob Simple's Online Shoes. Now he's not so sure. He had found three quality shoe manufacturers who agreed to ship shoes to his customers as soon as he faxed them the order. What's more, the manufacturers used Bob's labels and...
2008-02-28 09:47

Drop Shipping: Pros and Cons

  Drop shipping remains a hot topic among etailers but, even though it has many benefits, it isn’t the best option for every business. A drop shipper is a product supplier who is willing to ship individual orders. Usually when products are purchased for resale, you have to buy them in bulk...
2008-02-28 09:38

Vendors: Rack Jobbers

Definition   Rack jobbers are wholesalers or manufacturers who are granted sales space (usually shelf space) in retail outlets and who offer goods there that are not covered by the existing assortment. The goods are the property of the rack jobber, but they are sold via the retail site’s POS...
2008-02-28 09:35

Spread it around: find the best way to distribute your product, and you'll rake in the profits

  THE ENTREPRENEUR: Wayne Willert, 47, founder of Gutter-Bolt Inc. in Port Washington, New York THE PRODUCT: The Gutter-Bolt is an aluminum bolt used to attach gutters to houses or other structures. The product claims to offer a number of benefits over steel bolts, which are traditionally used...

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