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The Benefits of Exploring New Distribution Channels

distribution channels

Selling more is always a challenge, especially in the competitive retail landscape. As a result, it can be helpful to take advantage of a diverse range of distribution channels. Why? Because channel expansion creates opportunities to reach new customers, build brand recognition and increase profits.

Expanding Your Distribution Channels

When brands want to sell more products, they often need to expand their customer base. Instead of trying to bring the consumer to you, what if you make your product readily available to the consumer no matter where they shop? This is where increased distribution channels can help.

What is a Distribution Channel?

A distribution channel is a chain of businesses or intermediaries through which a good or services passes until it reaches the final buyer or the end customer. Distribution channels can include entities such as wholesalers, retailers, distributors, and even the internet. A distribution channel is part of the downstream process, in which product moves from the initial supplier to the end customer. A distribution channel is also part of the place aspect of a company’s marketing mix, alongside product, price, and promotion.

Many retailers don’t consider the positive effects that expanding their distribution channels can have on their business:

  • Drive Profits – When you increase the number of distribution channels, you gain opportunities to sell more of your products to both new and existing customers. You’re also able to develop new target markets and identify key consumers you’d like to reach through previously unexplored channels.
  • Build Greater Brand Awareness – The more available you make your products to consumers, the better your ability to generate buzz around your brand. By continuing to meet consumer demand and expectations across all channels, you can continue to build positive brand sentiment among consumers.
  • Reduce Market Risks – Selling through just one channel is a risky game. Profits can rise – and fall – based on that one channel alone. When you harness multiple distribution channels, you spread market risks across multiple customer venues. Your business won’t go into free fall if one channel isn’t performing well, especially if other channels are performing better than expected.

Developing a new distribution strategy can ultimately be an effective way to increase your business. However, distribution across multiple channels can prove to be more harmful than helpful if the process isn’t planned and managed properly.

Effectively Managing Your Channels

There are several elements that go into a robust multichannel distribution strategy – most of which can be overwhelming for brands to handle on their own. When you partner with an experienced, hands-on distribution provider, you don’t have to worry about the details that can jeopardize the achievement of important business goals.

An experienced distribution provider can manage important elements that affect your distribution channels and multichannel strategy:

  • Brand Packaging – Your distribution partner should develop unique, customized brand packaging that goes beyond the simple brown box.
  • Shipping – Conveniently located warehouses should make for speedy and streamlined shipping services.
  • Stock and Inventory Management – Armed with the right tools, your distribution provider can manage all inventory and stock processes.
  • Decision Support – With in-depth reports, your team will always have access to current and pending order statuses, product inventory and more.

Trusted Distribution Channel Management

Looking to expand your brand’s product distribution channels? Consider a trusted, experienced distribution partner such as Dotcom Distribution to take on your distribution management and strategy.

Dotcom Distribution is a strategic eCommerce distribution and fulfillment provider dedicated to helping your brand take advantage of new channels and market opportunities. Our facilities, systems, and processes are designed to help brands grow their customer base and explore new selling opportunities.

To learn more about how Dotcom Distribution can help you develop an effective strategy for exploring new distribution channels, contact us today.

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