Final answer:
Electronics Storage primarily provides the channel function of warehousing, which involves storing goods until needed. Warehousing is essential for reducing costs and stabilizing the supply chain, as demonstrated by Amazon's efficient use of large, computerized warehouses.
Step-by-step explanation:
Electronics Storage, as a wholesaler that holds inventories to reduce carrying costs and risks for suppliers and customers, primarily provides the channel function of warehousing. This function is critical in the distribution process because it involves the storage of goods until they are needed by the consumers, which helps in stabilizing the supply chain. Warehousing allows for the goods to be kept safely and efficiently, usually in large quantities, until they are transported to the retailers or directly to the consumers.
Companies like Amazon have capitalized on significant advantages of economies of scale by holding their inventories in huge warehouses in low-rent areas and using highly computerized systems, thus maintaining low average costs per sale. These practices underscore the importance of warehousing in managing costs and ensuring timely delivery of products.