Newsstand Task Part 2

The second part of the Newsstand Task was to research different magazine distribution methods, such as physical distribution, direct distribution, etc. This is my research:

Physical Distribution

Newsstands provide physical distribution, i.e. the magazine is physically on the newsstand and people can pick it up and buy it. Physical distribution is the movement of finished products from the manufacturer to the consumer. It involves going through various wholesaling and retailing channels, and included areas of customer service, transportation, and warehousing. Physical distribution works on a sale and return agreement between the retailer and the publisher. This means that if a retailer buys 20 magazines and only sells 16 of them, they can send back the four unsold magazines and the retailer is not charged for these magazines.

However, physical distribution is time consuming and expensive. As it involves the transport of products from the manufacturer and the consumer, it also involves all the costs of transport, such as petrol and drivers. Also, there will be the added costs of unsold magazines. Before they are made, it is impossible for publishers to know how well a magazine or issue of a magazine is going to sell. If retailers send back lots of magazines which cost the retailer nothing, the publisher is losing money on the unsold magazines. Therefore, physical distribution is an expensive method of distribution.

There are three types of physical distribution: intensive distribution, selective distribution, and exclusive distribution. For magazines, intensive distribution is used; this means that they are stocked the majority of retail outlets.

Direct Distribution

Direct distribution is when a free magazine is given directly to the consumer on the street. It is an alternative to indirect distribution in that it does not involve marketing the magazine through wholesalers or retailers. Magazines that use direct distribution include Shortlist. The main advantage of direct distribution is that it gets to a lot of people; Shortlist is read by over 500,000 people.

However, there are disadvantages to this method of distribution. Direct distribution is extremely expensive. The publisher makes no money on the magazines themselves, and the people who give out the magazines have to be paid. Therefore, magazines using direct distribution will generally have more adverts in them than magazines using other methods of distribution, as advertising is the only way to cover the costs of making and distributing the magazine.

Postal Subscription

This is probably the most efficient method of distribution. As subscriptions are pre-paid by the consumer, there is no wastage of money and so the publisher makes money through the circulation of the magazine.

This type of distribution is also better for the consumer. They do not have to go out to buy the magazine and do not have to worry about missing an issue; the next issue is automatically delivered to them when it comes out. Those subscribing may also receive their magazines before they appear in the shops, and subscriptions often offer incentives. For example, a magazine may offer subscribers a free gift upon subscribing and there may be exclusive offers and even front covers that are purely for those who subscribe to the magazine.

Online Distribution

This method of distribution is often paper-free and is both convenient and cheap for both the publisher and the consumer. Magazines can be downloaded onto internet devices such as phones, tablets and Kindles and therefore only a digital copy of each magazine needs to be made which saves on the cost of printing magazines. Also, online subscriptions can be made to some magazines; this allows the consumer to have a digital copy of the magazine emailed to them, combining the benefits of lower publication costs with the benefits of subscriptions.

Some magazines only exist in digital form, or e-zines. RWD is an example of an e-zine.