Amway, which combines direct selling with a multi-level marketing strategy, is a successful example of direct business model. Without the supply chain process of distribution, independent business owners (IBO) sell products directly to potential customers. Everyone can become IBO and has the privilege to buy all products with discounted price. Therefore, Amway mainly sell products online rather than through physical stores. This strategy saves the cost of setting up warehouses and cuts middlemen. It guarantees consumers buying products with lower price compared with other brands.

In addition, the direct business model can build a bridge between manufacturers and customers. Amway sells products to costumers face to face; therefore, it provides an opportunity for Amway to realize consumer’s thoughts and track their feedbacks. That is to say, Amway can get immediate information and adjust their selling strategies.

However, the direct business is not adaptable for each product. Retails cannot completely be replaced. These two sales models generate mutual benefits together.

Articlehttp://www.amway.com/about-amway

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