Factors to consider the channel of distribution

• Products being sold:

  Suitable transportation and storage must be used depending on the type of product/how durable it is. Perishable goods must get to the consumer as quickly as possible.
• Size of the market:

  Mass-produced products would need wholesalers and retailers to get the product to the consumer.
• Finance available:

  If finance is limited, this may affect the channel selected, e.g. May not have finance to set up it's own e-commerce.
• Legal Restrictions:

  For example alcohol, petrol and medicines can only be sold by license holders.
• Organisations own distribution capabilities:

  Does the organisation have its own transport or does it need to be outsourced?
• Image of the product:

  For example, High quality, exclusive products should be distributed through exclusive up-market retailers.
• Where the product is in its life cycle:

  As a product goes towards growth and maturity, it needs to be more available to meet growing demand.
• Technical Products:

  Highly technical products may need to be demonstrated through direct sales methods.