Distribution Channels Flashcards
(8 cards)
What are distribution channels?
Refer to the pathways through which a product or service reaches customers
What are the two types of distribution channels?
- Direct
- Indirect
What is direct distribution?
When a business sells directly to customers without intermediaries
What are some examples of direct distribution?
Online stores
Physical retail locations
Direct sales representatives
What is indirect distribution?
When a business uses intermediaries such as wholesalers, distributors or retailers to reach customers
What are some examples of indirect distribution?
Supermarkets or department stores
E-commerce marketplaces
Third-party distributors or wholesalers
What does the term B2B mean?
Business selling to another business
What does the term B2C mean?
Business selling to customers
