Distribution Channel

What is a distribution channel?

A distribution channel is a path through which goods and services reach to consumers from vendors. There can be several intermediaries between them, like wholesalers, distributors, retailers, etc.

Following are some examples of distribution channels:




Here, the first one is called direct distribution, as the manufacturer is selling directly to the consumer, e.g. some farmers sell directly to the public. The second one is called one tier distribution as one intermediary (Retailer) is used here, e.g. Walmart. Similarly, the third and the fourth are known as two-tier distribution and three-tier distribution respectively.

Following is the flow diagram of the distribution channel of Britannia biscuits:

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