Channels of distribution can be direct or indirect.
- Direct Channels: The producer sells directly to the consumer. This can be achieved via online stores, company-owned stores, or direct mail.
- Indirect Channels: Involves intermediaries such as wholesalers, retailers, agents, or brokers.
Types of Intermediaries are:
- Wholesalers: Buy products in bulk and sell them to retailers.
- Retailers: Purchase products from wholesalers or producers and sell them to the end consumers.
- Agents or Brokers: Facilitate the sale from producers to end-users without actually taking ownership of the product.
- Distributors: Similar to wholesalers but often have a closer relationship with the producer and provide added services such as after-sales support.
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