Question

Why is the use of direct and indirect channels is important to Amazon?

Answer 1

The direct channel is important to Amazon as it eliminates the extra cost involved and tucked in intermediaries. It also provides a direct connection with the customers and resolves their queries directly. Another benefit of the direct distribution channel is that it will be convenient for the customers and they can give positive feedback directly to the company on an e-commerce site.

On the other hand, indirect channels are important to Amazon as they provide a good competitive advantage to the company. the company can reach to the larger customer base by selling goods through intermediaries. This will allow the company to focus more on the product rather than logistics.