Distribution Channel

What is a Distribution Channel?

A distribution channel is a process in a chain of networks for the distribution of goods and services. Depending on the chain of distribution, distribution channel includes a producer, distributor, wholesaler, retailer and consumer. Generally, goods come directly from the producer who passes it to the wholesaler, who also passes it to the retailer, then the retailer sells to the final users.

In this age, however, goods may not necessary pass through all the distribution channels. For example, a producer may decide to sell directly to the final consumer instead of going through the chains of distribution.

A distribution channel is the process of sending goods through various sellers till the product reaches the consumer.