What is a benefit of a small start-up using a direct channel?

A small start-up using a direct channel benefits from convenience and 24/7 access for several reasons. When a business sells directly to consumers, it eliminates intermediaries such as wholesalers or retailers. This direct relationship allows customers to access products or services at any time, significantly enhancing convenience.

This accessibility can lead to increased customer satisfaction, as shoppers can browse and make purchases whenever it suits them, including outside of traditional business hours. Furthermore, by controlling the sales process directly, the start-up can respond quickly to customer inquiries and adapt its offerings based on immediate customer feedback. This direct interaction also helps to build stronger relationships with customers, fostering loyalty and repeat business.

In contrast, increased overhead costs, limited customer reach, and higher taxes do not typically align with the advantages of using a direct channel for a small start-up. In fact, utilizing a direct channel often helps to keep costs lower and reach customers more efficiently.