What Is a Distribution Cost?

In Western economics, the meaning of distribution is the meaning of establishing a sales channel. According to the definition of the famous marketing master Philip Kotler, the Distribution Channel or Marketing Channel refers to a certain product. (Commodity) or service (Service) from the producer (Producer) to the consumer (Consumer) in the process of obtaining ownership of such goods and services to help transfer ownership of all enterprises and individuals. However, it does not include Suppliers, Facilitators, etc.

Distribution

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The rapid development of the commodity economy makes

The basic function of a distribution channel is to enable products from

Level of distribution channel

Distribution channels can be classified according to the number of intermediaries. During the transfer of goods from producers to consumers or users,

A complete distribution process includes two basic elements, one is the participants of the entire distribution process, and the other is the responsibilities and obligations assumed by each participant.

In the entire distribution process, participants are not only companies and distributors. A more complete consideration should include corporate headquarters, overseas agencies, distributors, second batch dealers, and terminals. Regions and channels vary, and the level of involvement of various stakeholders in each task varies.

At the same time, a complete distribution process involves several tasks, such as,

Taking industrialized products as an example, today's industrialized products have gone through seven stages including market research, product design, research and development, production, marketing, sales and after-sales service. Among them, the process from product shipment to user purchase is to complete the sales and service process of goods with the help of external resources such as the distribution network. The company's management of this process is distribution management.

As for most companies that rely on distribution as their main sales channel, as their business continues to expand, many companies have distribution networks throughout the country. Distributors are not only their partners, but also frontier locations for their marketing, sales, and service. Therefore, to be able to understand the operation of distributors in a timely manner, and to give the necessary and stable cooperation is the goal that every enterprise expects. However, due to the inconsistent development of information technology, a lot of manual communication is still required for information exchange. In the traditional methods such as manual, telephone and fax, companies often cannot accurately understand the distributors' business,

Distribution system is a very important concept. It includes six elements, namely cost, capital, control, market coverage, character, and continuity. In English, these six factors all start with the letter "C", so some people call it "channel six C". An analysis of these six "Cs" is the foundation of the distribution system.

1. Influx of online and offline channel users into the mobile terminal ^[1]

User diversion is to intercept the user's interest, which translates into consumer purchasing power. Mobile cloud distribution is unique in that it can perform unified background management for different platforms on the PC side and the mobile side. It supports the synchronous management of user data on the PC side and the mobile side, and it can well import the original PC side users into the mobile group, thereby forming Influence. Facing the flow of 800 million mobile user crowds, the products generate independent QR codes, and the sharing functions of social platforms such as WeChat circle of friends, Weibo, QQ, etc. can attract users of other services to interact in mobile stores, thereby Get user resources quickly.

2. Improve user experience with order synchronization

Sourcing vendors, especially those with huge distribution support, have huge orders for different business models. Mobile cloud distribution supports unified order processing for all order information for agents, Taobao consignment, franchise, and mobile retail. For consumers, the synchronization and efficient processing of orders on multiple platforms can improve the user experience.

3. Recruit distributors to leverage omnichannel marketing

The Internet can also help distribution through Taobao sellers by opening a store on Taobao and providing a distribution platform. Nowadays, mobile cloud distribution is used to attract merchants by recommending rebates on the PC side, inspiring distributors in disguise. The distribution store resources directly match the online contact methods, which greatly improves the efficiency of business investment. On the mobile side, it is more unique to be able to give each distributor an independent mobile distribution store, which not only accelerates the distributor's distribution capabilities, but also serves as an important chip to attract high-quality distributors. ^[1]