What Is a Distribution Channel?

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While distribution is about getting products into customers' hands, the actual process can be much more complex. It involves storing products, organizing inventory processes, managing supply chains, processing orders efficiently, and packaging and shipping products to consumers quickly.

When consumers purchase products online, they rely on consistent product and shipping information, so businesses that align their distribution processes with their online listings and deliver products to consumers quickly often win customer loyalty.

Many things can interfere with a distribution system, such as supply chain bottlenecks or disorganized inventory, which can impact the customer experience.

That's why many businesses use distribution management systems to keep track of their distribution centers, inventory, and orders. A robust and automated system can help a business forecast inventory needs, manage stock effectively, and coordinate steps in its supply chain.

What Is a Distribution Channel?