The Complete Guide to Crafting An E-commerce Distribution Strategy That Sells
An e-commerce distribution strategy encompasses every step involved in getting products from a manufacturer to the end consumer who purchases those products online.
Having a well-defined distribution strategy is critical for e-commerce businesses to scale and achieve success.
A strong e-commerce distribution strategy helps you expand your reach beyond just your own website or sales channels.
It lets you tap into other powerful online and offline channels to increase awareness of your products and make them available to a wider audience.
The right distribution strategy can be the difference between struggling to acquire customers and sustaining rapid growth.
In this Substack, I will cover what an e-commerce distribution strategy is, how to select the right distribution channels for your business, best practices for establishing partnerships, effective supply chain management, using data to optimize decisions, and the top e-commerce niches poised for growth.
I'll also include an FAQ section to address common questions around building a distribution strategy.
With the right approach, you can develop an e-commerce distribution plan to support your current and future business goals.
What Is E-commerce Distribution?
E-commerce distribution refers to the process of getting products from manufacturers to end consumers through online sales channels.
It involves several key players:
- The manufacturer - The party that produces the actual products being sold.
- The retailer - The online storefront selling products directly to consumers. This is typically the e-commerce business owner.
- The customer - The end consumer purchasing products through the e-commerce store.
- Third party logistics providers - Companies that handle warehousing, packaging, and shipping products to customers on behalf of e-commerce retailers.
The distribution strategy refers to the broad plan for how products will reach customers. This encompasses decisions around business models, sales channels, partnerships, and more.
The distribution channels are the specific mediums used to sell and deliver products. e-commerce distribution channels include:
The company's owned e-commerce website
Online marketplaces like Amazon, eBay, and Etsy
Social media platforms like Twitter and Facebook
Retail distribution software platforms like Shopify
The distribution strategy determines the business model and overall plan.
The distribution channels represent the tactical execution of that strategy through online storefronts and third party channels.
An effective e-commerce distribution plan utilizes multiple channels to maximize reach, sales, and delivery efficiency.
How to Pick E-commerce Distribution Channels
Keep reading with a 7-day free trial
Subscribe to BowTiedParrotFish’s Newsletter to keep reading this post and get 7 days of free access to the full post archives.