Which is a major challenge for small start-ups using direct channels?

A major challenge for small start-ups using direct channels is indeed the cost of postage to consumers. This expense can significantly impact their overall budget, especially in the early stages of business when resources are limited. Small start-ups often operate on tight margins and need to manage every cost carefully. When relying on direct channels, which often involve shipping products directly to consumers, the costs of postage can quickly accumulate, making it more challenging to remain profitable.

In contrast, increased market visibility, access to a large customer base, and reduction in operational costs are generally seen as advantages rather than challenges. Increased market visibility can help small businesses attract more customers, while accessing a large customer base helps in scaling the business. Furthermore, utilizing direct channels effectively can sometimes lead to reductions in operational costs through streamlined processes and eliminating the need for intermediaries. However, the direct cost of postage remains a significant hurdle for these businesses as they seek to compete effectively in the market.