Final answer:
Rakesh can benefit from lower distribution costs and increased personal interaction by selling through small shops instead of relying solely on online sales.
Step-by-step explanation:
Rakesh, the owner of Pinker, is considering selling through small shops as an alternative to his current sales model, which is online. Two benefits of selling through several small shops rather than exclusively online include Lower distribution costs and Increased personal interaction. By partnering with small shops, Rakesh could decrease his dependency on expensive shipping methods, as the shops would essentially become a localized distribution network reducing the reliance on costly warehousing and mail-order systems. Moreover, selling through small shops allows for face-to-face interactions with customers, which can enhance customer service and foster relationships that potentially lead to repeat business and local word-of-mouth endorsements. Both benefits align with traditional in-person retail advantages, while providing a tangible experience online sales cannot match.