5 Benefits of Using Distribution Channels in Business

Distribution channels are the pathways through which products and services reach end consumers. Simply put, it is the route goods take from manufacturers to consumers. The importance of distribution channels in business growth must be emphasized, as it determine how effectively products and services can be delivered to the target market. In this article, we explore the benefits of distribution channels for business growth and how Strikingly can help businesses achieve their distribution goals.

What Is A Distribution Channel?

A distribution channel or distribution marketing definition includes a set of intermediaries that make a product or service available for use or consumption by consumers or industrial users. It is also called a distribution channels and encompasses all activities moving goods from producers to end-users.

Distribution channels are an integral part of business processing. Let us now explore the five main benefits of distribution channels and how businesses can leverage distribution channels for growth using Strikingly.

#1 Benefits Of Distribution Channels - Increased Market Reach

Distribution channels refer to how businesses deliver their products or services to customers. These channels are important for business growth as they allow companies to reach new markets, increase visibility and brand awareness, and target specific customer segments. Strikingly offers easy online store integration, making it a great tool for businesses looking to expand their distribution channels.

Businesses can access different customer segments and geographic locations by utilizing various channels of distribution, such as wholesalers, retailers, and e-commerce platforms. Market research expanded reach allows companies to tap into new markets, attract new customers, and ultimately increase their sales potential.

Importance Of Distribution Channels For Market Reach

Distribution channels plays a crucial role in enhancing market reach for businesses. Companies can extend their geographical coverage, tap into new customer segments, and access diverse markets by leveraging various distribution channels. Expanded reach of the market increases the visibility and availability of products or services, ultimately driving sales and business growth. Strikingly allows businesses to create an online store and sell their products globally easily.

Direct And Indirect Distribution Channels

There are different types of distribution channels that businesses can utilize to enhance their market reach. Direct distribution channels involve selling products or services directly to customers without intermediaries. Indirect distribution channels, on the other hand, rely on intermediaries to reach the end consumers. These intermediaries can include wholesalers, retailers, agents, or online marketplaces.

Utilizing Multiple Distribution Channels

Businesses often adopt a multi-channel distribution strategy to maximize market reach, as it involves simultaneously utilizing multiple distribution channels to target different customers and market segments. Companies can cater to various customer groups' preferences and buying habits, expanding their market reach and customer base by combining direct and indirect channels.

Geographic Expansion And International Markets

Distribution channels are essential for businesses looking to expand their market reach geographically or enter international markets. Companies can overcome logistical and cultural barriers, gain access to local market insights, and reach customers in previously untapped regions by partnering with distributors or retailers in different regions or countries. The geographic expansion enables businesses to explore new opportunities and expand their customer base beyond their domestic market.

How Does Strikingly Help To Increase Market Reach

Strikingly helps increase your market reach in several ways:

1. Get your store online - The most important first step is to build your ecommerce store online. Strikingly makes this easy with customizable templates, an intuitive builder, and affordable pricing. Getting online dramatically expands your potential reach beyond just local customers.

2. SEO tools - Strikingly provides built-in SEO tools to help optimize your store for search engines like Google. It includes options like:

• SEO-optimized templates - Strikingly's store templates follow best practices for search engine optimization.
• Blog - The Strikingly blog feature allows you to publish content to help boost your store's credibility and authority. Fresh content also gives search engines a reason to crawl your store more often.
• Alt text and page titles - Easily add optimized alt text, page titles, and page descriptions to help search engines understand your products and pages.
• Mobile-optimized - Strikingly stores are automatically responsive and optimized for mobile devices. It is increasingly important for good SEO as more and more people shop on their phones.
• Metadata - It provides options to add metadata like page titles, descriptions, and keywords to your pages. It helps search engines categorize and rank your content.
  

Optimizing for search engines can help you gain visibility with a much larger audience of potential customers searching online. The SEO boost expands your reach.

3. Social media integration - Easily add social media buttons to your Strikingly store to promote products on networks like Facebook, Pinterest, Twitter, and more. It makes it simple for customers to share your products, which expands your reach to new potential customers in their networks.

4. Email marketing - Strikingly integrates with email services like Mailchimp, allowing you to capture customer emails at checkout and stay in touch via email newsletters. Email marketing is a way to frequently engage your customers, drive repeat sales, and boost referrals - all of which increase your market reach.

Image taken from Strikingly

Strikingly provides all the tools to significantly expand your market reach and gain visibility with more potential customers. Expanding reach is a key benefit to distribution channels like an ecommerce platform.

#2 Benefits Of Distribution Channels - Cost-Effective

Reducing expenses is crucial to any business, and distribution channels can help. Businesses can benefit from reduced advertising and marketing expenses by using channels of distribution. As distributors are responsible for promoting the products to their customers, businesses do not have to spend as much on advertising. Distribution channels offer cost-effective solutions for businesses. Companies can leverage existing channels and infrastructure instead of establishing and managing distribution networks.

Reduced Capital Expenditure

Establishing and maintaining a distribution network can be a significant business investment. The reduced capital expenditure includes expenses such as setting up warehouses, transportation fleets, hiring staff, and implementing distribution technology. Businesses can reduce the need for these capital expenditures and allocate resources to other core areas of their operations by utilizing existing channels of distribution.

Economies Of Scale

Distribution channels often operate on a larger scale, serving multiple businesses and customers. The economic scale allows for economic impact, where the costs per unit decrease as the volume of goods or services distributed increases. Businesses can take advantage of these economies of scale, resulting in lower distribution costs per unit and overall cost savings by leveraging established distribution channels.

Shared Distribution Infrastructure

Distribution channels provide shared infrastructure and resources that can be cost-effective for businesses. For example, companies can utilize their existing warehousing and storage facilities, transportation networks, and order fulfillment systems by partnering with wholesalers or retailers. The shared distribution infrastructure eliminates the need for businesses to invest in their infrastructure, reducing costs and increasing operational efficiency.

Leveraging Expertise And Relationships

Distribution channels often have extensive industry expertise, established relationships with suppliers and customers, and knowledge of market trends and consumer behavior. Businesses can leverage their expertise and relationships by partnering with these channels, benefiting from cost-effective sourcing, improved market insights, and efficient customer targeting. In this case, collaboration allows businesses to focus on their core competencies while relying on the distribution channel's expertise and cost-effective solutions.

Strikingly Helps To Manage Cost

An ecommerce platform like Strikingly can help reduce costs in several ways:

• Low upfront costs - Strikingly plans start at $0/month. Low initial investment to get started. Much less than developing a custom store.
• Reduce development costs - No need to hire developers. Strikingly provides all the tools to build your store.
• Lower operating costs - Strikingly automates tasks like product listings, checkout, payments, hosting, and security. Reduces day-to-day management costs.
• Optimize marketing spend - Tools on Strikingly help optimize organic and paid traffic. Spend your marketing budget more efficiently.
• Streamline fulfillment - Dropshipping integration virtually eliminates fulfillment costs. Even with your own inventory, Strikingly automation helps reduce overhead.
• Global reach - Reach customers worldwide through Strikingly's ecommerce ecosystem. More sales spread over the same cost base improves efficiency.
  

Image taken from Strikingly

Strikingly's affordable pricing, built-in tools, automation, and global ecommerce integration all help ecommerce stores reduce initial startup costs and ongoing operating costs. The ability to build and run an online store cost-effectively is a key benefit of using their platform.

#3 Benefits Of Distribution Channels - Improved Productivity

Increasing productivity is crucial in today's business landscape to keep up with the competition and maximize profits. Distribution channels play a significant role in improving productivity by streamlining processes and reducing workload. Efficient distribution channels contribute to improved productivity within a business.

E-Commerce Platforms

These platform includes activities like inventory management, order fulfillment, and logistics. Businesses can benefit from their expertise and experience, resulting in smoother operations, faster order processing, and higher productivity by relying on specialized distribution partners.

Time-Saving

Businesses can save time on various tasks such as marketing, advertising, and transportation by leveraging channels of distribution. With the help of intermediaries, companies can focus on their core competencies while leaving distribution-related tasks to third parties.

Reduced Workload

Distribution channels also help reduce workload by sharing responsibilities with intermediaries such as wholesalers, retailers, and distributors. Businesses can free up time and resources for other important activities by delegating tasks such as inventory management, order processing, and customer service to intermediaries.

Decreased Inventory Management

Inventory management is one of the businesses' most time-consuming and challenging tasks. However, by using distribution channels such as drop shipping or consignment sales, companies can reduce inventory holding costs and eliminate manual tracking.

How Can Strikingly Help With Improved Productivity?

Strikingly boosts productivity through automation, an expanded customer reach, simplified logistics, and optimized business processes. The net result is a much more efficient, productive operation.

It can help improve productivity in several ways:

1. Automation - Platforms like Strikingly automate many tasks in setting up and managing an online store. It includes things like:

• Website building - The tool provides templates and an easy drag-and-drop interface to build an ecommerce store. It is much more efficient than coding a site from scratch.
• Product listing - It's easy to add products, photos, descriptions, pricing, etc. Strikingly automates the process of compiling all this into professional product listings.
• Checkout - Strikingly provides an automated checkout process that accepts payments, processes orders, sends order confirmations, etc. It handles all the checkout steps automatically.
• Reporting - It provides reports on sales, traffic, conversions, etc. It automates the analytical process.
  

The automation saves a huge amount of time and effort. Store owners can focus on other high-value tasks.

Image taken from Strikingly

2. Reach more customers - The potential customer reach increases significantly with an optimized online store. It can drive more sales and revenue without proportionally increasing costs and effort.

3. Simplified logistics - An online store, in combination with dropshipping or integration with suppliers' warehouses, simplifies the logistics involved in selling and shipping products to customers. Owners don't have to handle physical products or shipping, saving time and money.

4. Streamlined business processes - Using an ecommerce platform like Strikingly encourages owners to review and streamline their overall business processes to take advantage of the platform best. Its improved optimization drives productivity gains across the whole business.

#4 Benefits Of Distribution Channels - Increased Sales

One of the biggest benefits of using distribution channels is the potential for increased sales volume. Businesses can tap into previously untapped revenue streams by reaching new markets and customer segments. Strikingly's easy online store integration makes it simple for businesses to expand their reach and increase sales.

Distribution channels play a crucial role in driving sales growth. Businesses can reach a larger customer base and increase their chances of making a sale by making products available through multiple channels. Different distribution channels, such as direct sales, retail partnerships, or online marketplaces, provide diverse avenues for customers to access and purchase products. Broader availability enhances the likelihood of attracting and converting potential buyers, leading to increased sales volume.

Access To Diverse Markets

Distribution channels enable businesses to access diverse markets and customer segments. Companies can tap into new markets and reach customers with different preferences, needs, or buying habits by partnering with distributors or retailers in different regions or industries. Diversification of the market increases the potential for sales growth and revenue generation.

Increased Product Availability

Effective distribution channels ensure that products or services are readily available to customers when and where they need them. Businesses can optimize inventory management, reduce stockouts, and improve product availability by utilizing channels of distribution. Product availability increases the likelihood of sales conversions as customers can easily find and purchase the desired products.

Market Expansion And Market Penetration

Distribution channels play a significant role in market expansion and market penetration strategies. Businesses can leverage distribution channels to enter new geographic regions, target previously untapped customer segments, or introduce new products to existing markets. Expansion and penetration increase sales opportunities and the potential for capturing a larger market share.

Leveraging Channel Expertise

Distribution channels often possess market expertise, consumer behavior knowledge, and established customer relationships. Businesses can leverage their expertise to position products effectively, develop targeted marketing strategies, and optimize sales by partnering with these channels. The insights and guidance distribution channels can increase sales and improve overall business performance.

Strikingly Helps With Cross Selling To Increase Sales

Cross-selling opportunities are also a benefit of distribution channels. Businesses can offer complementary products or services to their existing customers by leveraging relationships with distributors. Cross-selling not only increases revenue but also strengthens customer loyalty.

Strikingly's SEO features are another way to increase sales through improved visibility in search engine results pages (SERPs). With customizable meta descriptions, title tags, and URLs, businesses can optimize their website content for relevant keywords and phrases, making it easier for potential customers to find them online.

Image taken from Strikingly

#5 Benefits Of Distribution Channels - Improved Customer Service

In addition to increased market reach, cost-effectiveness, productivity, and sales, distribution channels also improve customer service. With the help of distribution channels, businesses can provide localized customer support and convenient and responsive customer service to their customers. Effective channels of distribution contribute to enhanced customer service experiences. Businesses can ensure timely product delivery and efficient customer support by partnering with reliable distributors or online platforms.

Accessing Products

Customers can access products through their preferred channels, making purchasing more convenient. Moreover, channels of distribution allow for feedback and communication between businesses and customers, enabling companies to address concerns, provide after-sales service, and build long-term customer relationships.

Localized Customer Support

One of the benefits of using distribution channels is that businesses can provide localized customer support to their customers. Customer support on the local level means businesses can have local representatives familiar with the language and culture of the area where they operate. As a result, customers can get their queries resolved quickly and efficiently.

Convenient And Responsive Customer Service

Another benefit of using distribution channels is that it allows businesses to provide convenient and responsive customer service. With the help of distribution channels, businesses can offer multiple modes of communication, such as email, phone, or live chat, to their customers. In this case, customers can reach out to businesses anytime with their queries or concerns.

Improved After-Sales Support

Distribution channels also help businesses provide improved after-sales support to their customers. With the help of distribution partners, businesses can ensure timely delivery of products and services along with efficient installation and maintenance services.

How Can Strikingly Help With Improved Customer Service?

Strikingly offers a live chat feature that enables businesses to provide real-time assistance to their customers on their websites. Some features help enhance the overall customer experience by quickly resolving their queries or concerns.

Image taken from Strikingly

Conclusion

Distribution channels play a critical role in business growth and expansion, allowing businesses to increase their market reach, reduce costs, improve productivity, increase sales, and enhance customer service. Businesses can optimize their operations, expand their market presence, and achieve greater success in the competitive business landscape by understanding the various distribution channels available and leveraging them effectively.

Strikingly is a great choice for businesses seeking to expand their reach. Businesses should consider utilizing the benefits of distribution channels and explore the capabilities of Strikingly for their growth strategies. Sign up today to utilize its features to combine it with the power of distribution channels to boost your business 2X.