Channel of Distribution
The path a product takes from its producer or manufacturer to the final user.
Intermediaries
Businesses involved in sales transactions that move products from the manufacturer to the final user.
Wholesalers
Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses.
Rack Jobbers
Wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays.
Drop Shippers
Own the goods they sell but do not physically handle the actual products.
Retailers
Sell goods to the final consumer for personal use.
Brick-and-mortar Retailers
Sell goods to the customer from their own physical stores.
e-tailing
Involves retailers selling products over the internet to the customer.
Agents
Act as intermediaries by bringing buyers and sellers together.
Direct Distribution
Occurs when the producer sells goods or services directly to the customer, with no intermediaries.
Indirect Distribution
Involves one or more intermediaries.
Exclusive Distribution
Involves protected territories for distribution of a product in a given geographic area.
Integrated Distribution
When manufacturers own and run their own retail operations.
Intensive Distribution
The use of all suitable outlets to sell a product.
e-marketplace
The online shopping location for retail selling over the internet.