What are Types of distribution channels, and the importance of distribution channels?
Types of distribution channels are as follows:
1. Direct distribution channel
It is the channel when the company sells product directly to the end consumers. For example, selling through the internet ecommerce portal is a direct distribution channel.
2. Indirect distribution channel
a. One level channel
Here, the company sells the product to retailers and retailers sell the products to end consumers.
b. Two level channel
Here, the company adds one more component as wholesalers to the one level channel. The product moves from company to wholesalers, then to retailers and finally it goes to consumers.
c. Three level channel
Here, different agents are also added before the wholesalers. These agents can also be named as distributors. These agents come before the wholesalers.
Distribution channels are important, because it helps the company to move ahead in the market. It brings exposure to the consumers that also help in brand positioning. Further, distribution channels showcase the products and brings awareness among consumers. Hence, business development takes place.