Factors to be considered before choosing a particular channel of distribution board. - SS1 Commerce Past Questions and Answers - page 1

Product characteristics

Cost considerations

Scalability and growth potential

The target market's characteristics provide insights into factors such as demographics, geographic location, buying habits, and accessibility, which influence the choice of distribution channels. Understanding the target market helps determine the most effective way to reach and serve customers.

Evaluating cost considerations helps businesses assess the financial implications associated with different distribution channels. It involves analyzing factors such as transportation costs, inventory holding costs, fees or commissions, and marketing expenses. Considering costs helps determine the most cost-effective and efficient channel that aligns with the company's resources and objectives.