Online distribution channels

• What are online distribution channels?

  Distribution channels using the Internet
• What are the two common types of online distribution channels?

  Producer to consumer and producer to retailer
• What is e-commerce?

  Using the Internet for commercial transactions
• What is m-commerce?

  Mobile commerce conducted via smartphones
• What is a benefit of online distribution channels regarding market access?

  Access to a wider market beyond locality
• How does being open 24/7 benefit online distribution?

  It increases opportunities for sales
• What is a consequence of having a globalized industry for online distribution?

  Exporting becomes an option
• What can strong international demand lead to?

  Targeted marketing for specific markets
• What is a financial benefit of online distribution channels?

  Reduced overheads and fixed costs
• How does online distribution affect break-even output?

  It may lower break-even output
• What is a potential need for online distributors regarding storage?

  They may need a warehouse for inventory
• How can online marketing tools benefit businesses?

  They allow targeting specific audiences
• What insight can businesses gain from online distribution?

  Understanding existing customer preferences
• What is a major cost associated with online distribution channels?

  Creating and maintaining a website
• Why is customer service a challenge in online distribution?

  It lacks face-to-face interaction
• What is a potential issue with certain products sold online?

  Customers cannot try them before buying
• How does exchange rate affect exporting in online distribution?

  A strong pound makes exports more expensive
• What are the pros of using online distribution channels?

  • Wider market access
  • 24/7 availability
  • Reduced overheads
  • Targeted marketing
• What are the cons of using online distribution channels?

  • Website costs
  • Customer service challenges
  • Product trial limitations
  • Exchange rate dependency