The Distribution Strategy: What You Need to Know

To sell your product or service, there are three possibilities:
The direct channel: you sell directly to your target (example: a farmer selling his goods directly on the farm).
The short channel: there is an intermediary between the producer and the consumer (example: "the hive that says yes" which is between the producers and the consumers).
The long channel: in this case, several intermediaries intervene (example: supplier-producer -> wholesaler -> retailer -> buyer customer).
Your method of distribution depends on the terms of purchase of your product/service (example: your target buys mainly on the Internet: your products must be available on the Internet), criteria for buying your target (example: your target wants to advise and after-sales service, you can sell at home) and where your target is located (example: your target is in your city, you can sell in the markets, door-to-door, etc.).
The distribution can be:
Mono-channel: you only use one sales channel
Multi-channel: You use several sales channels, physical and/or virtual (internet, mobile applications), the customer finds the same products on different channels.
Cross-channel: you go through several sales channels.
The different distribution channels
The direct circuit
The advantage is to have the customer in front of you for each sale and therefore to have immediate feedback on his expectations and needs, what he likes or not; you can quickly adapt your product.
The other advantage is that having no intermediary, the commercial margin is greater.
The main disadvantage is that you have to store the goods you sell, which affects your cash flow.
The long circuit
The advantage is that you outsource the sale, which reduces your sales staff. The disadvantage is that you do not have the customer in front of you and must settle for the returns of your intermediaries.
The other major disadvantage is low margins since each intermediary must "take his margin".
It is therefore recommended for products/services whose consumers have significant needs. The goal is to facilitate access and ensure the permanent availability of its product to the customer. This is the case of sweets, lighters, and sodas. This allows the company to install the brand and the product in the minds of consumers who find it everywhere (local stores, supermarket, supermarket, gas station, station) and to have an overall market coverage.
If you have just started a new business, it’s highly recommended that you get in touch with a local distributor that can handle the supply chain for you. Many small businesses have difficulty in handling the supply chain on their own. A reputable business like Transmed can be the perfect solution. Transmed is a distribution company that has been operating for more than half a century. The company specializes in managing the distribution of FMCG products for various major brands and works with companies from all around the globe. If you want a reputable business to handle your distribution, Transmed is the number one choice for you!