Business

Distribution

The word distribution , which has its origin in the Latin word distributĭo , is the action and effect of distributing something between people or spaces.

Usually it is applied to topics related to the sales market , where distribution refers to the division of merchandise between several businesses. However, the concept is widely used in the economy in general when establishing a budget allocation in a company or in a country.

Distribution channels

Any company that offers products for sale must have distribution channels to ensure that these reach as many people as possible in a given territory. These channels are classified into two large groups:

  • Direct: it is when the company itself distributes its products to other companies (whether or not they are final consumers) or in cases where it sells the products directly to the final consumer, without having to take them to other stores. In this model there are no intermediaries in the distribution.
  • Indirect: contrary to the previous one, in the indirect channel there are one or more intermediaries from the moment the product leaves the producing company to the final consumer. For example, products can be distributed by agents (freelancers who sell for sales commissions), wholesalers (stores that buy from the manufacturer to resell products in bulk) or retailers (stores that buy quantities to resell only by unit or at retail) ),

Distributors

In a given market, supply and demand are the main pillars, but distribution is what will keep sales going and will directly affect the reputation of the brands.

Distribution companies are very important to efficiently ensure that final consumers obtain the desired product. Your sales can be wholesale or retail.

It is these companies that are responsible for bringing the products of a large brand to many regions of a country to stores and other businesses . The more distributors a brand has, the more people will be able to enjoy its products.

These companies must be aware of consumer needs in terms of timing and eventualities. For example, during important dates such as Christmas, any brand that has to do with food, beverages and other resources such as ornaments typical of the time must ensure that their product is on many shelves from the month of November, at least.

Distribution examples

  • Land distribution among indigenous ethnic groups .
  • Farmers who sell their products directly in their community.
  • Transnational companies that have branches in other places and, in turn, many distributors are in charge of taking their products to every corner.
  • Candy vending machines.
  • Department stores that sell products of many brands.
  • Dealers who buy cars from manufacturers and sell them.
  • Stores that sell merchandise to retail or wholesale stores.

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