A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final customer. The main types of distribution channels are:
1. Direct selling
2. Indirect selling
The most common type of distribution channel is indirect selling, which involves the use of intermediaries such as wholesalers, retailers, and distributors.
Direct selling is when a company sells its products or services directly to consumers without the use of intermediaries.
Franchising is a type of distribution channel that involves the licensing of a company’s name, trademark, and business model to a franchiser.
Wholesaling is the selling of goods or services in large quantities to businesses or other organizations, rather than to individual consumers.
Retailing is the sale of goods or services to consumers, usually in small quantities and often in person.
There are also various hybrid models of distribution channels that combine two or more of the above types.