4b. Using E-Commerce to Generate Sales (flashcard 1 and 2)

How have social trends impacted distribution changes?

The growth of e-commerce and the shift from product-based businesses to service-based businesses

Why is it important for businesses to understand distribution trends?

It helps them adjust their distribution strategies to better meet customer needs and stay competitive

Why has online distribution (websites or apps) become increasingly popular?

Due to the convenience and accessibility it offers to consumers

What is dropshipping?

When products are shipped directly from the producer to the costumer, this reduces the cost and complexity of distribution, making it easier for businesses to sell online

What does drop-shipping allow a business to do?

Allows them to sell products without holding stock

What is an example of drop-shipping?

• Amazon is known as a third-party logistics provider (3PLs) 

• They provide businesses with the infrastructure and online marketplace which allows them to reach a wider audience and increase sales without having to invest in their own distribution infrastructure 

• Many business now generate the bulk of their sales selling on Amazon