Question

which are two characteristics of direct distribution that differ from fulfillment centers? (choose two)

direct distribution is also known as a zero level channel.
the manufacturer controls all aspects of distribution.
packing and shipping is done by a third - party.
warehousing is outsourced.
inventory is stored for longer periods of time.

Explanation:

• Direct distribution is also known as a zero - level channel: In direct distribution, products go directly from the manufacturer to the consumer without intermediaries (a zero - level channel). Fulfillment centers often involve intermediaries or are part of a multi - level distribution system.
• The manufacturer controls all aspects of distribution: In direct distribution, since there are no intermediaries (in the strict sense of a zero - level channel), the manufacturer has full control over activities like marketing, sales, and logistics. Fulfillment centers may involve third - party logistics providers or other intermediaries that share control.

Packing and shipping done by a third - party and warehousing being outsourced are more characteristic of fulfillment centers (which often use third - party services). Inventory being stored for longer periods is not a key differentiator as fulfillment centers can also have inventory turnover based on demand.

Answer:

Direct distribution is also known as a zero level channel, The manufacturer controls all aspects of distribution.