How to Develop a Good Distribution Strategy for Small Business?

How to Develop a Good Distribution Strategy for Small Business?


How to Develop a Good Distribution Strategy for Small Business?

If you manufacture or sell products, one of your primary considerations should be to develop a solid distribution strategy. Your products need to reach the customers in a timely manner, intact and secure. That can only happen if you plan distribution properly and ensure it’s in place before you start selling products.

Here are some factors you need to consider when you plan your distribution system:

Your Business Reach
The first thing you need to do is map your area of influence and decide how far you can reasonably deliver your products. You can also extend your reach through e-commerce websites and physical distributors located in areas you can’t regularly deliver to. It’s a good idea to start out small and limit your area of influence. For example, if you’re a newly established business in New York City, consider limiting your delivery to the boundaries of the city, or perhaps the surrounding suburbs. That would allow you to gain a foothold in the market.

Direct and Indirect Channels
You can get your products to your customers in two different ways. You can directly ship them to your customer’s shipping address using services like UPS, FedEx, or USPS. This is popular with online retailers because it’s convenient and relatively affordable. You can also get the products to your customers indirectly through a network of distributors. You won’t have to ship individual products directly to the customer as you can just ship them in bulk to the distributor or dealer.

The Budget
This is one of the most important considerations when you plan a distribution network because you need to be certain your finances can support a comprehensive distribution network. It’s a good idea to determine how much shipping and transport would cost you in both direct and indirect methods. Bulk transport is typically more expensive, but such purchases are also more profitable. Shipping is cheaper and allows you to interact with your customers directly, but it’s also cumbersome. You need to package, generate an invoice, and pay for the shipment yourself. That might not always be a financially sound option for you.

Customers tend to get frustrated with delays and problems because sometimes they need products in a time-sensitive manner. If you don’t deliver on your promises or have delivery speeds up to industry standards, they’ll look to your competitors and that’s the last thing you want. That’s why you need to consider the points mentioned above and come up with a sound plan.
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Business & Marketing Tips: How to Develop a Good Distribution Strategy for Small Business?
How to Develop a Good Distribution Strategy for Small Business?
How to Develop a Good Distribution Strategy for Small Business?
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