Question

Explain with examples why some markets sell good to producers and not directly to consumers.

Answer 1

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Answer 2

Explanation:-

• Manufacturers don't Sell on to Consumers, Because they do not want to jeopardize relationships with distributors and retailers, and thus, possibly, their own revenues, but they're constantly tempted by the larger margins of selling through direct-to-consumer sales channels.
• Many manufacturers are still biding their time but the difficulty is more relevant than ever. In fact, there are only a few arguments against manufacturers selling on to consumers. Therefore, it’s only a matter of time.

• For example: If any brands want their own e-commerce websites and set their prices, the local retailer could take over logistics and delivery to the customer. Thus, not only is the retailer involved in the process; the manufacturer also gets considerable insight into his customers and their needs.
• Manufacturers will save on expensive shipping and return shipping costs, whilst retailers will enjoy a further sales channel without having to take a position . Moreover, the increased consumer-direct activity could help manufacturers to achieve better service and greater customer loyalty. A win-win situation for all parties involved.