Channels of distribution

The channel of distribution is the way in which the product gets from the manufacturer to the consumer.

Four different routes that a product takes from manufacturer to consumer: 1 direct to consumer. 2 via wholesaler. 3 via retailer. 4 via wholesaler and retailer.

The manufacturer is the company that makes the product.

A wholesaler is a business that buys products in bulk from the manufacturer who then sells on smaller quantities.

A retailer is a business that sells smaller quantities of products directly to consumers. They can either buy products from the manufacturer or from a wholesaler.

Traditionally, consumers buy goods from retailers. However, consumers can also buy from wholesalers or the manufacturer through different channels of distribution.