Distrobution channels

Question 1

Producer to customer

Answer 1

E.g. Apple
+Can charge lower prices because no whole seller or retailer is involved
-Lower sales volume
-Lower reach and more need for marketing

Question 2

Producer to retailer to customer

Answer 2

+Retailers have high reach so no need for marketing e.g. Tesco
-Retailers take a cut so wont receive full selling price

Question 3

Producer to wholesaler to retailer to customer

Answer 3

+wholesaler buys in bulk increase sales
+ Less distribution cost as only delivering to one place
-Retailer & wholesaler get margin, so higher final price for customer
-Harder to provide customer service for customer

Question 4

Direct online

Answer 4

-Sell directly to customers online
-Producer gets 100% of the selling price

Question 5

Online retailer

Answer 5

-Used by smaller businesses who lack the resources to produce their own e-commerce platform
-Use existing e-commerce platforms E.g. eBay, Amazon, Esty