which are two characteristics of a direct distrubutaion that differ from fulfillment centers?
the manufacturer controls all aspects of distribution.direct distribution is also known as a zero level channel.
A direct distribution approach involves selling and delivering products directly to the customer without any intermediaries. In contrast, fulfillment centers are third-party warehouses that store and ship products on behalf of businesses.
Two characteristics of a direct distribution approach that differ from fulfillment centers are:
1. Ownership of the distribution process: In a direct distribution model, the company owns the entire distribution process, from manufacturing to delivery to the end customer. This allows for greater control over the customer experience and provides opportunities for direct feedback from customers. On the other hand, a fulfillment center simply provides a storage and logistics service, with no direct control over the customer experience.
2. Cost structure: Direct distribution models require significant investment in infrastructure, including warehouses, transportation, and personnel to manage the entire process. This can be expensive and time-consuming for businesses. In contrast, fulfillment centers offer a more cost-effective way to store and ship goods, as they can leverage economies of scale to offer services at a lower cost. However, businesses using fulfillment centers may sacrifice some control over the distribution process.
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