What kinds of services are presented in internet-based distribution channel?

Nowadays people tend to use web-site to purchase a product. With no doubt, it is easy way to make a purchase, however as everything has a two sides, it has a disadvantage. Also from the view of vendor (producer), using web based distribution channel could be worthless and no chance to achieve economic goals. Due to choice of distribution channel is made by vendors, it is better to take look at their view. Furthermore, whether products and services are present in web based distribution channel is depend on vendor’s choice.

There are several advantages of using web based distribution channel. The following are the important advantages of the web, when it is used as the distribution channel in the organization: -
Development of new markets - The web, as a distribution channel, provides new market segments to the management of the organization. It provides or develops more information for those markets where the business can sell its product and services.
Large customer base and feedback - The web distribution channel helps to make a strategy to serve more customers. It also provides immediate feedback from the customers to the organizations. The organization can change or improve its product and services according to the needs of the customers.
Brand loyalty - The organization can promote its products and services through the Internet because in the present environment, more people collect the information from the Internet. It also helps to develop the brand loyalty by advertising and promoting the product.
Timely delivery - The web distribution channel enables the service provider to deliver the product and services in the required specific time period.
Less Cost - The web distribution channel doesn't require physical shop to display its products. Hence, it also helps to save the cost of the company.

Disadvantage
The web distribution channel also has some disadvantages that are following -
Information security - The use of web as a distribution channel doesn't provide a feeling of security to the customers. Some people don't want to purchase through the Internet because they feel uncomfortable to disclose the information of their credit card while making the transaction on the Internet.
No practical exposure - All the companies, which provide its product and services through the web distribution channel, are not able to satisfy the touch and feel sense to the customers because Internet not provides the facility of touching and feeling of the product.
Expensive - The organization has to develop a website for selling its products and services through the Internet. Therefore, it is an expensive source for the company because the set up of a website involves a huge amount of money (Distribution).
Competition - The web, as a distribution channel, also has to face many competitors because all the other organizations also provide information on the Internet about their products and services and the customer choose to that product, which gives him a greater satisfaction at the lower rate.

So in this case, what kind of services can be found in internet distribution channel is dependable on us. By analyzing target group, vendors choose their way of distribution.