Bookmark
A distribution channel refers to the path or route taken by goods and services as they travel from the point of production to the point of consumption. In short, a distribution channel is a way for businesses to get their products to consumers. A channel is a specific touchpoint in which a company sells its products, including ecommerce, retailers, and wholesalers. There are two main types of distribution channels: direct and indirect.
Indirect distribution channels are often used when businesses want to reach a larger number of consumers or when they want to sell products in a different geographical area. In an indirect distribution channel, producers utilize intermediaries such as wholesalers, retailers, or distributors to sell their goods and services to consumers. As an example, Walmart and Sephora are all indirect distribution channels, as they allow the brand to indirectly distribute its products to their customer base.
A direct distribution channel is one in which producers sell their goods and services directly to consumers without the use of intermediaries. Selling directly to consumers is a tried-and-true business strategy that has been practiced for centuries. When you sell direct, you don’t need to deal with the added costs of intermediaries – instead of paying sellers, shipping companies, and third-party retailers, your business keeps your profits. Early tech giants like Apple and Dell capitalized on direct sales models to build early success.
Get started on your CEO Journey with this curated collection of exceptional CEO resources.
Build your business and grow your brand the CEO way. Activate your CEO Plus membership, and receive one-on-one coaching, premier resources, expert support, and exclusive benefits that’ll accelerate your success.
Receive answers to your most burning questions, get unstuck, and start moving towards your success with your private consult call.
Start and grow your business from scratch with the premier all-in-one program that provides you with everything you need for a successful brand.
Related Topics
Human Resources is critical. When a small businesses or creator starts to grow and expand their teams beyond independent contractors, it is a good idea to create a human resource department.
Turn your passion into profit, with the #1 Business and Creative Center.
The premier business and creative center linking you to your success.
CEOS