Distribution cost definition
/What is Distribution Cost?
Distribution cost involves those expenses related to the transport of goods. Distribution costs may include the following:
The movement of goods to resellers and customers
Transport fees and tolls
Warehousing costs (including the rent charged to store goods in a warehouse)
Product handling costs (including the cost to move goods within a warehouse)
Costs to maintain a fleet of transport vehicles (including maintenance, repairs, and vehicle depreciation)
The distribution cost for a business can be substantial when the units shipped have a high cubic volume, goods are perishable, or when customers are located in distant areas.