The movement of business between a producer and a customer is referred to as a distribution channel. It is the direction taken by a transaction. Distributors serve as middlemen, distributing and storing goods for manufacturers to sell to retailers. These networks can be straightforward or increasingly complicated.
There are two types of channels: direct and indirect. In a direct channel, the supplier communicates with the customer directly. An indirect channel, on the other hand, includes the use of middlemen in the sales process. When expanding into new markets or changing up the distribution strategy, it’s crucial to understand the various levels of distribution.
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