What are the different types of distribution channels?

The specific network of manufacturers, wholesalers, retailers, and end consumers depends on the type of distribution channel used. Here are the three main types of distribution channels: Intensive Distribution: This channel type targets a vast number of outlets to saturate as much of the market as possible (e.g., the adult beverage industry).

What is a distribution channel?

The term “distribution channel” refers to the methods used by a company to deliver its products or services to the end consumer. It often involves a network of intermediary businesses such as manufacturers, wholesalers, and retailers. Selecting and monitoring distribution channels is a key component of managing supply chains.

What is an example of a direct distribution channel?

For example, a company that manufactures clothes and sells them directly to its customers using an e-commerce platform would be utilizing a direct distribution channel. By contrast, if that same company were to rely on a network of wholesalers and retailers to sell its products, then it would be using an indirect distribution channel.