{"id":1172,"date":"2022-03-23T16:40:23","date_gmt":"2022-03-23T16:40:23","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/retail-distribution\/"},"modified":"2026-02-05T09:35:58","modified_gmt":"2026-02-05T09:35:58","slug":"retail-distribution","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/retail-distribution\/","title":{"rendered":"What Is Retail Distribution? Strategy & Best Practices"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is retail distribution?<\/a><\/p>\n\n\n\n

How does retail distribution work?<\/a><\/p>\n\n\n\n

How to choose the right retail distribution strategy<\/a><\/p>\n\n\n\n

How to optimise your retail distribution strategy<\/a><\/p>\n\n\n\n

ShipBob can help you improve your retail distribution efforts<\/a><\/p>\n\n\n\n

Retail distribution FAQs<\/a><\/p>\n<\/div>\n\n\n\n

Whether you\u2019re running a DTC brand or a B2B ecommerce<\/a> business, distribution is one critical aspect that needs to be carefully considered and planned out.<\/p>\n\n\n\n

Good distribution management<\/a> improves supply chain efficiency by streamlining the entire retail logistics<\/a> operations. As a result, you need an optimised retail distribution strategy for better efficiency and cost savings.<\/p>\n\n\n\n

In this post we\u2019ll give you a closer look at what retail distribution is, how it works, and how you can choose or optimise your retail distribution strategy<\/a>.<\/p>\n\n\n\n

What is retail distribution?<\/h2>\n\n\n\n

Retail distribution refers to the process of moving goods from manufacturers and producers to consumers. Along the way, products may pass through intermediaries such as wholesalers, vendors, and retailers. When these external networks<\/a> participate in the process, the brand is using indirect distribution channels.<\/p>\n\n\n\n

For direct to consumer (D2C or DTC) brands, the distribution path is shorter because the brand sells directly to the customer through its ecommerce website or retail store.<\/p>\n\n\n\n

How does retail distribution work?<\/h2>\n\n\n\n

There are several types of retail distribution strategies. While each of these strategies ultimately result in getting the goods to the customers, there are variations in the process and the number of outlets used.<\/p>\n\n\n\n

Intensive distribution<\/h3>\n\n\n\n

This strategy involves using all available outlets to flood the market and sell products to almost every potential customer. An intensive distribution strategy is typically ideal for products with high levels of competition.<\/p>\n\n\n\n

Since consumers have a wide variety of options to choose from, they\u2019re likely to settle for an alternative if their preferred brand isn\u2019t readily available. So by employing a wide distribution network, businesses can make their products more accessible than their competitors and gain leverage.<\/p>\n\n\n\n

Selective distribution<\/h3>\n\n\n\n

Selective distribution involves taking a more targeted approach to retail distribution because it utilises outlets in certain locations. As a result, products are still widely available to interested customers but not as scattershot as with an intensive distribution strategy.<\/p>\n\n\n\n

A selective distribution method is ideal when your target audience is willing to do some shopping around and isn\u2019t interested in an alternative brand. For example, some consumers may be loyal to the Nike brand and would be willing to shop around to find the perfect pair of Nikes instead of buying a similar design from other brands such as Puma or Adidas.<\/p>\n\n\n\n

Exclusive distribution<\/h3>\n\n\n\n

As the name suggests, this is a highly targeted distribution strategy that involves restricting distribution to a single distributor, wholesaler, or retailer in a specific area. This type of distribution works well for brands that want to maintain a sense of exclusivity, catering to upscale customers who are willing to spend more for higher-quality products or for certain brands.<\/p>\n\n\n\n

For example, luxury brands like Herm\u00e9s follow this strategy, making select products like the Birkin or Kelly bag available only in their brick-and-mortar stores.<\/p>\n\n\n\n

How to choose the right retail distribution strategy<\/h2>\n\n\n\n

With each of these different distribution strategies having unique benefits, it may be challenging to decide which is the right choice for your business. That said, making the right decision is crucial because your distribution logistics<\/a> and retail supply chain<\/a> rely heavily on the distribution strategy you choose.<\/p>\n\n\n\n

Due to the large market coverage it offers, intensive distribution<\/strong> works best if:<\/p>\n\n\n\n