Dynamic boom in the e-commerce sector calls for potent distribution networks. There are various ways to deliver your products/services to your customers. Earlier merchants used to start with just one distribution channel such as an online or brick-and-mortar store. However, as businesses grow, you need more channels to reach out to customers — through direct email marketing, online store, or a physical store.
For any company, making its product available to the customers can be a vital strategic issue. Firms often consider distribution as a mere traditional concern. But with the advent of technology and an urgent need for speedy time-to-market, the distribution channels have come under scrutiny. The Internet has transformed the consumer and business procurement activities which in turn has opened unprecedented opportunities for vast and easy access to customers. Pervasive and efficient logistical networks, which are being deployed by third-party shipping agents, have revolutionized the economics of material delivery. Consequently, it compels manufacturers to reconsider delivery frameworks and whether they should:
- sell directly to the end consumers,
- rely on intermediaries,
- try both the above approaches in parallel.
A typical multichannel distribution system selects the third approach. It consists of retailers and manufacturers, in which the manufacturer sells their own products/services through independent retailers, and also through their wholly-owned distribution channels. This way, the manufacturer acts as a supplier as well as a competitor to the retailers, simultaneously. Multichannel distributions allow e-retailers to expand their market coverage and target multiple customer segments as well as reach out to a new potential target audience.
Also, leveraging the multi-channel distribution network enhances the ability to address the needs of existing customers. Purchase experiences vary among various channels, so customers tend to develop preferences with respect to different purchase experiences. Moreover, price, as well as non-price factors, influence customer channel choices. These factors can be categorized into:
- Product assortment
- Customer service
Additionally, extending your market presences impacts two things:
- Increases customer awareness
- Establishes brand loyalty among consumers
Multichannel distribution the KartzHub way
KartzHub streamlines your multichannel distribution framework and lets you focus on other aspects of your business — accounting, shipping, orders, and inventory. Through its Centralized Inventory Software, KartzHub acts hand-in-gloves with the sellers and helps businesses outline smooth online sales management. It focuses on improving customer satisfaction via on-time delivery and enhanced services. You can simplify your online selling by signing up here.