Is A Selective Distribution Strategy Right for Your Brand?

Blogs | May 17, 2023

There are two main types of distribution strategies: exclusive and intensive. An exclusive distribution strategy consists of a company selling its products only through their own website or store. An intensive distribution strategy involves maximizing the number of distribution channels a company sells its products through. Selective distribution is a balance between an exclusive and intensive distribution strategy which relies on a select network of distributors to sell their products. Many high-end companies selling luxury products prefer this strategy as it is a way to maintain quality and customer satisfaction by targeting consumers of a specific geographical area.

3 Benefits of Selective Distribution

1. Customer Satisfaction, since the distributors are carefully selected by the company it’s more likely the consumers will benefit from higher quality products and services.

2. Streamlined Communication, partnering with a select number of distributors allows companies to develop better relationships with their channel partners which leads to improved brand image and customer loyalty while creating a network that is very knowledgeable on your products.

3. Reduced Costs, with a more modest distribution approach your company will save on distribution costs by targeting consumers more directly than you would by maximizing the number of channels your company sells through.

How POTOO can help:

Since Amazon does not enforce exclusive distribution rights except within the countries that have laws specifically referring to selective or exclusive distribution (i.e. China, France, and the United Arab Emirates) our team of marketplace experts can track and monitor your products on Amazon and work through Amazon Brand Registry to report any marketplace violations on Amazon.cn, Amazon.fr and Amazon.ae while providing your brand with full marketplace visibility through our impactful data insights.

If your company is currently thinking about implementing a selective distribution strategy and would like more information on how and where to start, our advisory program, eAdvise can offer the support, guidance and leading best practices to get started!

Message us on LinkedIn or contact us at info@potoosolutions.com to start gaining complete marketplace visibility with our full brand tracking services and/or let us help you meet your marketplace goals with our eAdvise program.

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