Strategically Speaking: How Will E-books Impact Your Bottom Line?
It’s time to sit down and rethink traditional business models. Here are key factors to consider.
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2. Distribution Cost. Distribution cost refers to the personnel associated with warehouse and customer-service activities associated with the order intake, fulfillment and returns processes—in short, the folks who pick, pack, bill and collect on behalf of the current business processes. When e-books become the primary form to deliver content, the traditional distribution organization, like the production department, is likely to undergo dramatic change and may potentially become completely extraneous in a world dominated by e-books. Many publishers have already taken steps to convert the fixed cost of distribution to variable by outsourcing their distribution needs to third-party providers.
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David Hetherington
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