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. It consists of chain of distributors through which the goods and services go across until they get to the final consumer.

Depending on the chain of distribution, distribution channel includes a producer, a distributor, a wholesaler, retailer and the consumer. 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 going through the chains of distribution.