Distribution Channels

Distribution channels: 

Routes taken for a product to move from site of manufacture to the end user (customer). 

Businesses that use multiple channels of distribution use an omni-channel distribution strategy (eg: online and via retailers). 

The fewer the stages in distribution, the lower the costs are in the value chain, potentially lowering the price for the end consumer as each stage in the stream captures profit margin which adds to the final price to the consumer.. 

Bypassing stages in the distribution network is called disintermediation (removing ‘middlemen’).

• Producer to Consumer

• Producer to Retailer to Consumer

• Producer to Wholesaler to Retailer to Consumer

• Producer to Agent to Wholesaler to Retailer to Consumer