Effects on Distribution Channels of a Developing Economy

In this case, the producers prefer opening their branches and physical supply stores of selling their goods online and approaching their customers directly. The electronic mode of goods and services supply has affected the use of intermediaries in- the producer, wholesaler, retailer, and consumer routes as means of distributing manufactures’ Products (Siguaw 100). The producers prefer this path due to the nature of their goods; customized commodities supplied according to the preference of the customer that requires the interaction of manufacturer and user. Perishability and technical nature of goods, Manufactures opts not to use the channels of distribution due to the nature goods they supply that are highly unpreservable requiring the use of face to face interaction between the supply and the customer hence eliminating the middlemen.