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Distribution: A Building Block to Business

July 14, 2020 by BPM Team

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Ecommerce distribution – men working in a warehouse

Regardless of what size business you operate, there is a very likely chance that you are a distributor of some type of good. Over the past few months, the retail industry has had to completely change the way that they do business. Even the smaller mom and pop family-owned businesses are turning to ecommerce distribution to help run their business in a smoother manner during this transitional time.

How Did Corona Virus Change the Way Retail Businesses Provide Goods?

The COVID-19 pandemic that has swept the world by storm has completely changed the way that businesses operate. Larger businesses that utilized services such as eBay and Amazon were impacted with heavier distribution needs. Consumers could no longer simply run out to the store and buy their essential goods. Families and individuals heavily relied on shipments to be delivered directly to their homes.

Throughout the COVID-19 pandemic homes and small businesses relied on their necessities to be delivered to their homes. Small businesses that focused on retail also had to switch their marketing techniques. Consumers could no longer come inside and browse, touch things, and purchase their belongings. Many smaller businesses became more web-based.

How Does Web-Based Work?

A strong social media presence is necessary in order to sell your goods when you have to convert to web-based. It is imperative to establish Facebook, Instagram, and Twitter accounts. To spread the word that your business is featuring items online, it is suggested that you offer new online-based customer giveaways. Businesses must encourage their existing clients to refer them to new clients. This will help bring brand awareness. Typically, a prize or discount is awarded to randomly selected existing customers, as well as new ones, to encourage them to try the product. The owner will then create a photo album of all items available for purchase and also offer online shopping directly from their website.

Controlling Shipping and Distribution

Small, medium, and even larger sized businesses cannot strictly focus on their online sales. These products must be shipped once they are purchased. When shipping, it is imperative to have a shipping and receiving department. This sector of the company will be responsible for receiving new merchandise and cataloging its arrival. Items shipped out are also thoroughly tracked until they reach their destination. This allows the business owner to keep stock of how many of each quantity is still available for purchase and how much must be ordered from the wholesaler.

Companies that were forced to put a focus on shipping and receiving during the coronavirus pandemic may not have been ready to deal with the magnitude of their sales. This is especially true for businesses that relied mostly on in-person sales prior to the virus. There are businesses that strictly deal with distribution. These distribution centers are capable of purchasing the items from the wholesaler directly. They then will fulfill the order when it is placed and ship to the purchaser. There are typically fees associated with utilizing a distribution center but it can end up being less costly than creating your own shipping and distribution center at the spur of the moment.

Why Is It Important to Change With the Times?

It is important to embrace the distribution side of the business. Businesses have been impacted by the pandemic, but there are other situations in which distribution centers can help build a business’s success. 

During natural disasters or seasons of in-climate weather, it is important to be able to have your goods reach your consumers. During rainy seasons such as monsoons or heavy winter snows, your customers may not be coming into your store as frequently. If you can provide your item via online shopping options, you will have a better chance of selling it and keeping your own business afloat. 

Small businesses have been embracing this technique by showcasing their items online on social media sites. Limited quantities also make the items more desirable. Allowing consumers to place themselves on a waitlist also helps ensure future purchases that will further grow the business.

You may also like: Advantages of Warehousing and Storage for a Logistics Business

Image source: Pexels.com

Filed Under: eCommerce Tagged With: Covid-19, distribution system, ecommerce, retail, Shipping

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