Definition of Distribution

Distribution refers to the method of delivering a product or service from the producer or supplier to the end consumer or user.
In the online context, distribution can include both digital products delivered over the internet and physical goods shipped to customers.
It is a key component of the marketing mix, often known as the ‘Place’ in the ‘4P’s model (Product, Price, Promotion, Place).

Types of Online Distribution Channels

Direct distribution involves a business selling its products or services directly to the consumer, often through their own website.
Indirect distribution associates with third-party retailers, online marketplaces, or intermediaries.
Digital distribution platforms, such as app stores or e-books marketplaces, are important for delivering digital goods or software.

Businesses can reach a global audience quickly and cost-effectively.
Online distribution allows for selling products 24/7, not limited to traditional store hours.
Businesses can benefit from real-time data analysis, enabling them to adjust their distribution strategies more effectively.

Businesses must ensure reliable and efficient fulfilment of orders, especially related to inventory management and shipping.
There can be issues related to digital piracy and counterfeiting for digital goods, demanding secure distribution platforms.
It may be necessary to manage returns effectively, particularly for physical goods, to maintain customer satisfaction.
Navigating various logistical, taxation, and legal issues for global distribution can be complex.

Assess the suitability and the potential market reach of the distribution channel for your specific product or service.
Accounting for costs associated with different distribution channels, including platform fees, shipping costs, taxes, and packaging.
Consider the speeds of delivery associated with each channel, as today’s consumers often expect fast and reliable delivery.
Incorporating the distribution plan into the broader marketing and operations strategy of the business.

Regular reviews and adjustments may be needed in order to adapt to changing market conditions and customer preferences.