Advantages of Direct Channel
There are lots of advantages of having a simple channel of distribution for making products available to the consumer. The most simple channel of distribution is direct channel, where a consumer directly deals with the producer.
Under Direct channel, a customer comparatively experiences better than what is experienced under indirect channel because of numerous benefits of direct channel. Such benefits are follows:
The customers get faster product delivery because they donâ€™t have to deal with any intermediary; they get the product directly from the manufacturer that leads to more time being saved.
They directly get the customer feedback and respond towards the product without involvement of any middlemen.
The profit margins are comparatively high because under direct channel they donâ€™t have to share profits with anyone, they are the ones who are entitled to the whole profits.
The producer has an edge over competitors in the market, if he/she is selling directly to the consumer, because he/she already has a strong consumer base without the involvement of middlemen.
These are advantages that make the direct channel better than the indirect channel because in the market so many people are approaching these direct channels.
Disadvantages of Direct Channel
If the direct channel has advantages, it must also have the disadvantages. It has quite a few disadvantages because here, the producer has to manage all activities by themselves. A manufacturer or producer has to manage all the activities and their time-frames on his own from selling, making strategies to calculating time required to finish the final product, he has to do it all on his own, which sometimes leads to dissatisfaction and unfulfilled duties. Such disadvantages are:
Under direct channel, the load to fulfil every work fall onto producer, he has to perform all tasks that must have been performed by an intermediary, but as there is no middlemen in this channel, the producer takes over all tasks.
The producer also has to bear the overhead cost, because direct selling increases the costs of different things like packaging, delivery, maintenance, etc. It burdens him because he is the only person dealing with the sale of his own products.
Examples of Direct Selling
There are some of the few examples of direct selling, which are as follows
Chain stores: These stores are opened by the producer to sell his products to a mass public. He opens these stores at different regions to sell his product on a large level.
Online Selling: What some producer do is that they sell their products directly to the consumers through several websites, where people are keen to purchase products online.
Advertisement: It is another example of direct selling, where producer advertises about his productâ€™s quality, details about price and uses, and where the product could be available.
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