What is alternative distribution and how does it work?

Question

With regard to product distribution and sales.

Answer 1

It refers to methods of selling and delivering products, different to traditional. (distributors-wholesalers-retailers)

The most popular now is the Internet (i.e. EBay, Amazon, etc.) , where you can buy almost anything, and receive the product at your home, either by FedEx or UPS or downloading it to your computer.
Traditionally, you should go to the shop and buy the book or music there. Not anymore.

But also it can be used for something totally different: using part-time, non exclusive sales forces instead of regular, full time salesmen.

In India, for example, there are huge companies selling to a huge network of salesmen (mostly women) using the railroad company to deliver the goods and collecting the money, on every small town. That job is impossible to do profitably with a regular sales force. That is also alternative distribution.

I have seen a similar approach in Colombia (for the leader in cosmetics)

Avon or Mary Kay can also be seen as founders of alternative distribution in the USA. They have been so long that almost look traditional now.

Answer 2

Another company chosen for other products. Might be less $$$ using different for various locations...