What characterizes a digital distribution channel?

A digital distribution channel is primarily characterized by the distribution of goods and services through digital means. This involves utilizing the internet and digital platforms to sell products directly to consumers, which allows for a broader reach and often a more efficient process compared to traditional methods.

Digital distribution includes online retailing, downloadable digital products (like music, software, or e-books), and services that can be accessed online (such as streaming services). This model enables businesses to lower costs associated with physical storefronts and inventory while also allowing consumers immediate access to products and services.

The other options represent traditional methods of distribution that do not embrace digital technology. For instance, a physical storefront presence entails having a location where customers can come and shop in person. Mail order catalogs involve delivering printed catalogs to customers who then place orders, which does not align with the immediacy and convenience of digital distribution. Wholesale trading within local markets pertains to buying and selling goods in bulk, typically in person, which again does not utilize digital channels. Thus, the primary characteristic of a digital distribution channel is its reliance on digital technology to facilitate transactions and access to goods and services.