Strategic Marketing - ShopNiche Place

Strategic Marketing - ShopNiche Place Analysis
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Table of Contents Place. 3 Channel System.. 3 Direct Channel System.. 3 Indirect Channel System.. 4 Logistics and Customer Service. 4 References. 6 Table of Figures. 7  Place  Channel System  ShopNiche is an online shopping site for various consumer products, and the platform connects users with sellers. The idea behind the site is that the users and buyers can find the items or products they need. The level of trust offered to buyers in transactions, the volume of products listed, and shipping affect customers’ intention to use the site again. The company adopts international standards on electronic commerce used in both the retail and distribution industries to reinforce consumer confidence. As an e-commerce platform having a variety of products available is necessary to attract more customers. There was negative growth in the U.S. retail sector even as covid-19 necessitated online shopping with the total U.S. retail sales declining to 2016 levels (Perez, 2020).  Active buyers use both computer and mobile applications to access and use the site services. Sellers are connected to the buyers electronically. ShopNiche uses both direct and indirect channel systems to cater to different market segments. Direct Channel System ShopNiche uses the direct channel system by selling products directly to the consumers where there are direct to consumer brands.  A direct distribution channel is established when a company brings and sells its product to the final consumer, without using intermediaries.   One of the benefits of having a direct channel system is that there is a direct relationship with the client. The company has a personal contact with the client, and this helps to understand them better there is immediate feedback. If the consumer is satisfied, the company knows that it is doing well and if the client expresses dissatisfaction, the company can take measures to correct and improve.             There is also immediate response, which helps to improve service delivery. Since sales are online, the company is connected the whole day, so it must respond immediately to any request, suggestion or disagreement from the client. By using the sales force, the salesperson can also quickly solve the customer's problem. Customer interaction with the e-commerce platforms is independent of other customers, but, still they expect their needs are met (Huang & Benyoucef, 2013).  Thus, understanding what influences purchase intention is necessary to improve service delivery and reduce the risk of low customer retention. Indirect Channel System The indirect channel system is present because the site sells products from wholesalers, and the consumers then but these products from the platform.  The indirect channel system is characterized by using intermediaries to get its products to the final consumer. Indirect distribution channels can be short or long, depending on the number of intermediaries in the distribution chain. Wholesalers have the capacity to acquire large volumes of products for its sale on a smaller scale to the retailers and final cons...