Physical Product

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A Physical Product is a tangible item you can touch, see, and feel.

These products exist in the physical world and must be made, stored, and delivered to customers.

Physical products range from everyday consumer items like clothing and electronics to industrial goods and machinery.1

Visual Representation

physical products visual representation

Characteristics

  • Tangibility: Unlike digital products or services, physical products have a physical form and presence.
  • Inventory Management: Physical products must be stocked, inventoried, and managed to ensure availability.
  • Shipping and Handling: These products require logistics for transportation and delivery to consumers.
  • Manufacturing: Physical products go through a manufacturing process that can involve raw materials, labor, and machinery.
  • Packaging: They require appropriate packaging to protect them during transit and to appeal to consumers on shelves.2

Benefits

Selling physical products offers several benefits.

Firstly, it allows for a sensory customer experience, where a product’s look, feel, and functionality can significantly influence customer satisfaction.

Secondly, it provides opportunities for branding and packaging to enhance the customer’s unboxing experience.

Thirdly, it often leads to higher perceived value and loyalty as customers develop a physical connection with the product.3

Challenges

  1. Supply Chain Management: Ensuring a smooth flow of goods from production to the consumer.
  2. Storage Costs: Physical products need warehousing, which incurs costs.
  3. Returns and Defects: Handling product returns and addressing manufacturing defects can be complex.
  4. Environmental Impact: Production and disposal of physical products can have significant environmental implications.

Examples

  • Consumer Goods: Smartphones, clothing, books, household appliances.
  • Industrial Products: Machinery, construction materials, tools.
  • Retail Items: Furniture, toys, beauty products.

Related Terms

References:

1. Physical product. Crystallize. (n.d.). https://crystallize.com/learn/concepts/ecommerce/physical-product

2. Byrd, E. (2024, April 23). Product attributes require thorough management – Catsy. Product Information Management. https://catsy.com/blog/manage-product-attributes/

3. DiSilvestro, A. (2022, January 13). Every business should offer physical products. here’s why. StartupNation. https://startupnation.com/grow-your-business/why-service-businesses-should-offer-physical-products-disilvestro/

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