A retail business that sells its products to customers online
Which term describes a business that buys large quantities of products and sells them on to shops?
Wholesaler
What is meant by 'e-commerce'?
Any business transaction that is carried out online
Which term describes a shop or outlet that sells products or services on behalf of a producer?
Retailer
What is meant by 'direct distribution'?
Selling products straight from the producer to the consumer
What is meant by a channel of distribution?
The route a product takes from the producer to the consumer
A farm sells its meat and vegetables directly to customers who visit the farm. Which channel of distribution is being used?
Producer to consumer
Which is a benefit to a producer of selling its products through a retailer?
The producer gains access to many more customers than selling alone
Why can a wholesaler usually buy stock at lower prices than a small retailer?
It buys products in much larger quantities from the producer
How has e-commerce changed the way many businesses distribute their products?
A business can sell to customers without a physical shop
What is a benefit to an e-tailer of being open for business 24 hours a day?
Customers can place orders at any time, which may increase sales
What is a benefit to a small e-tailer of selling through a large platform such as Amazon or eBay?
It can reach a much larger audience of potential customers
What is meant by an indirect channel of distribution?
A route to the consumer that involves at least one other business
A furniture maker sells its sofas to a wholesaler, who sells them to a high street shop, which then sells them to customers. Which channel of distribution is this?
Producer to wholesaler to retailer to consumer
Which is a drawback to a producer of selling its products through a retailer?
The producer receives a smaller share of the selling price
Why might a producer sell its products to a few wholesalers instead of dealing with hundreds of retailers itself?
It reduces the number of businesses the producer has to deal with
Why can an e-tailer often keep its costs lower than a high street retailer?
It can trade from cheaper premises such as a warehouse or a home
Which is a drawback for a business of selling its products only online?
It faces competition from sellers all over the world
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