Channel of Distribution

Posted in Operations and Supply Chain Terms, Total Reads: 3990

Definition: Channel of Distribution

A distribution channel is a chain of agencies or individuals through which the seller markets and sells his product or service to the end consumer. These individuals or organizations are referred to as intermediaries. Some of the intermediaries include retailers, wholesalers, value added resellers, system integrators, distributors etc. The plan that is developed by the seller to use these intermediaries is referred to as a channel strategy.

Some of the factors taken into consideration while selecting the right channel are market and product characteristics, company characteristics, middlemen, environment characteristics.

The different levels of the basic distribution channels can be given as below:


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