B2C distribution is a type of business model that focuses on the sale of products and services to consumers. It is one of the most common types of business models, and it can be used in a number of different industries. There are a number of benefits to using B2C distribution, including reach and economies of scale. In addition, B2C distribution can help businesses tap into new markets and grow their customer base.
In this article, we will be discussing the types of distribution channels mainly focusing on B2C Distribution.
B2C As A Macro-Level Distribution Channel
At the macro level or the industry level, there are basically two types of distribution channels. The first is called the B2B Distribution channel, and the second is the B2C Distribution Channel.
In a B2B Distribution channel, businesses sell and market their products to other businesses. An excellent example of this would be computer manufacturers who sell their wares to computer stores which then resell them to consumers. To understand more about B2B distribution channels, read here B2B Channels
In contrast, a B2C Distribution channel directly markets and sells to the end consumer. A good example of this would be Coca-Cola which sells its drinks to corner stores and supermarkets which then sell them to customers.
B2C channels — As the name implies, B2C channels are distribution channels that involve the delivery of goods from a manufacturer to a client. The customer in this scenario is an individual rather than a company. The B2C channel is used by any FMCG, Consumer Durables, or product-driven organization.
Because of the large number of participants involved, the B2C channel is usually the most extensive distribution channel. Despite the fact that some businesses have launched their own E-commerce portals to facilitate the movement of goods, the majority of businesses still rely on distribution channels to ensure that goods are moved and available to end customers.
For more discussions about these two models, read here: What Is B2B And B2C In eCommerce?
Types Of B2C Distribution Channels
There are basically four types of B2C Distribution channels, and they are as follows:
- Direct Selling: In this type of distribution channel, the company sells its products directly to the consumer without going through any middlemen. The most common examples of direct selling are door-to-door sales, trade shows, and telemarketing.
- Indirect Selling: In this type of distribution channel, the company sells its products to the consumer through a middleman such as a retailer or a wholesaler. The most common examples of indirect selling are brick-and-mortar stores, e-commerce platforms, and catalogs.
- Online Selling: In this type of distribution channel, the company sells its products online through its own website or through a third-party platform such as Amazon or eBay.
- Sell through Intermediaries: In this type of distribution channel, the company sells its products to an intermediary such as a distributor who then sells them to the consumer. The most common examples of this are distributors, wholesalers, and retailers.
The best type of B2C Distribution channel for your business will depend on a number of factors such as the type of product you are selling, your target market, your budget, and your resources.
In addition, communication is very essential in these channels. For more ideas on how to improve your communication with the consumers, read here B2C Communications: Improving Your Customer Service
Factors To Consider When Choosing A B2C Distribution Channel
There are a few factors that you should consider when choosing a B2C Distribution channel for your business. They are as follows:
- The type of product you are selling: The type of product you are selling will have a big impact on the type of distribution channel you choose. For example, if you are selling a physical product, then you will need to choose a distribution channel that will allow you to get your product into the hands of your target market. On the other hand, if you are selling a digital product, then you will have more options when it comes to choosing a distribution channel as you can sell your products online.
- Your target market: Another factor to consider is your target market. You need to choose a distribution channel that will allow you to reach your target market. For example, if your target market is located in a specific region, then you will need to choose a distribution channel that will allow you to reach them such as brick and mortar stores or online selling platforms.
- Your budget: Your budget is also an important factor to consider when choosing a distribution channel. You need to choose a channel that is within your budget and that will allow you to reach your target market. For example, if you are on a tight budget, then selling through intermediaries may be the best option for you.
- Your resources: Last but not least, you need to consider your resources when choosing a distribution channel. You need to choose a channel that you have the resources to support such as a website or an e-commerce platform.
For more understanding about the B2C model, read here How To Build A B2C Model In Ecommerce
B2C As A Direct Distribution Channel
A direct-distribution channel is one in which a corporation sells a product directly to the end client at any given time. Direct-distribution channels are most frequent in B2B organizations and are less common in B2C companies. The volume of sales in B2B companies is lower, but the value of sales and margins are substantially larger. As a result, B2B enterprises may try to sell directly to customers in order to maintain margins.
DELL, a B2C corporation, is an outstanding example of direct distribution. Dell revolutionized the distribution sector when it began selling customized Dell laptops to its clients in the early 2000s. You could go to the DELL website and configure your laptop (bigger hard drive, more RAM) before ordering it. It will be delivered in 45 days to you. Dell was able to entirely circumvent the traditional distribution chain and deal directly with the final client as a result.
Levels Of Distribution Channels
There are four levels of distribution in general. Read this article on industrial and customer channels to learn more about them. I’ve included a quick synopsis below.
- A zero-level channel is one in which the distribution occurs directly from the corporation to the end client.
- One-level channel — Distribution is handled by a single agent. From manufacturers to e-commerce businesses, for example. And from customer to E-commerce.
- Two-level channel — Distribution occurs between two business entities. Goods move from the manufacturer to the distributor, then from the distributor to the retailer, and finally from the retailer to the customer.
- Three-level channel — Distribution occurs between three business entities. Goods go from the manufacturer to the C&F, then to the distributor, then to the retailer, and finally to the client.
To understand more about these 4 levels of distribution channels read this article on industrial and customer channels.