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Why Pay More when You Can Pay Less? - Retail sales vs Direct selling

The purose of this article is to expain why retails sales and traditional distribution are now being replaced by direct sales and intellectual distribution.

To begin, let me explain what I mean by retail sales and traditional distribution: In traditional distribution, manufactured products are distributed to wholesales.  The wholesalers then distribute those goods to retailers and the retail outlets sell the products to the customer at a significantly greater cost than than the manufactures sold them for.  Retail outlets have no choice other than to do this, as they have to pay for advertising, salaries, lighting, etc. and those costs must be transferred to the customers if the retail outlets are to make a profit.

Intellectual distribution is the ability to provide product information to the customer, who then orders from the manufacturer (direct sales).

Have you ever been into a shop to discuss prices, only to return home and find the product far less expensive Online?  The product you are buying is identical, but Online you may be ordering it directly from the wholesaler or even the manufacturer.  The Internet has changed the way companies advertise and inform us about their products and the costs to the customer are significantly reduced as a direct result.

What does this mean for retail selling?  Can you see why many retailers and superstores are struggling?  Is this trend likely to continue?

I believe that it is the older generations who may be less comfortable using computers, keeping large sections of the retail industry from crisis.  Imagine what will occur when the bulk of the population are online and buying directly from the manufacturers.  Many people do grocery shopping online, Christmas shopping on the internet, we purchase books, cds and dvds online!  Is there any limit to what that we can order directly from wholesalers or manufacturers?

The situation is that retail distribution is declining and direct sales is growing.  This may be a very bad thing for retail outlets (look what happened to Woolworths in the UK!), but a great thing for direct sales businesses (i.e. Amazon). 

As individuals we can benefit from these economic shifts.  Firstly, we can buy products and services from direct sales companies.  Also, we may be able to align with a direct sales company, promoting the products and services they sell.  You can be an independent agent and generate commissions from any sales you generate.  This is ideally suited for the Internet and is definitely something worth considering in the 21st century!

Author : Dr. Andrew SmithArticle Submission, creator of the blog at  To learn more about making money online please visit

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My name is Dr. Andrew Smith and I am the founder of WINOnline.  Our team are dedicated to providing information regarding the current economy and aim to provide solutions for protecting your current income, whilst developing additional income streams.  If you have an interest in positioning yourself ahead of future trends to work towards true wealth then we may be able to help! Visit or view our Blog at

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