The end goal of any organization is to deliver value to the consumers. This can be
achieved by ensuring quality products get to the consumer through efficient sales and
distribution channels. There are several costs associated with sales and distribution,
including costs relating to the moment production is complete to the point it gets to
the consumer and everything in between, including the cost associated with making the
products attractive or desirable to consumers. These costs related to sales and
distribution have the potential to impact some metrics of organizational performance.
This study examines the impact of such costs on revenue, return on assets, and return on
equity and gross margin in the Nigeria consumer goods sector from 2013 to 2021 in 14
companies. The results revealed that sales and distribution cost has (a) moderate to
high positive association to revenue; (b) very high positive association to gross margin
(c) and no established relationship with Return on Asset and Return on Equity. The study
also revealed that alcoholic beverage companies spend comparatively more on sales and
distribution costs. Ultimately, this results from this study when combined with future
studies can help identify points of maximum efficiency in the sales and distribution
cost, i.e. the point where maximum returns in terms of revenue and profit is reached
before equilibrium or decline happens for every sales and distribution expense.