Distribution Channels Flashcards

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What is a distribution channel in business?

The route a product takes from producer to the final customer.

A middle business, like a wholesaler or retailer, between producer and customer.

When the producer sells straight to customers with no intermediaries.

A business that sells goods or services directly to final customers.

A business that buys in bulk from producers and sells smaller lots to retailers.

Splitting large quantities into smaller amounts for resale.

A route with few or no intermediaries, like producer to retailer to customer.

A route with more intermediaries, such as producer to wholesaler to retailer to customer.

Using more than one route to sell, for example shops, websites, and apps.

It lets firms sell direct online, cut middle steps, and reach wider markets.

They must reach customers quickly to stay fresh and reduce waste.

Product type, customer location, costs, control, and speed of delivery.