Place: Digital Distribution (OCR GCSE Business)

Revision Note

Lisa Eades

Expertise

Business Content Creator

Digital Distribution Channels

  • The growth of the internet has meant that some products are now capable of being delivered digitally

  • Digital distribution is commonly used for products including:

    • Financial services, such as banking and insurance

    • Entertainment, including music, film, gaming and television

    • Media, including books, magazines and newspapers

The internet has allowed products including books, films, magazines, TV and banking to be delivered digitally
The internet has allowed products, including books, films, magazines, TV and banking, to be delivered digitally
  • Products are accessed in a range of ways:

    • They are downloaded and kept as digital files

    • Access is provided for a limited time following payment

    • Users log in to use features

Evaluation of Digital Distribution

Advantages

Disadvantages

  • Goods are available as soon as they are purchased and can be accessed at any time

  • Delivery and warehousing costs are eliminated

  • Convenience for customers as physical storage space is not required

  • Some customers may lack the knowledge or IT facilities to download products

  • Some goods are not suitable for physical distribution, e.g. household goods or consumables

  • Digital content may be illegally copied and shared, reducing revenue

Examiner Tip

Digital distribution is different from e-commerce, which is likely to still involve the physical movement of goods.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.