Levels of distribution

Question 1

Zero level

Answer 1

This means there is no intermediary between the producer and the customer. The makers of the product sells directly to the final buyer.

Question 2

One level

Answer 2

This occurs when there is one intermediary between the producers and customers. For example, a business may sell to a retailers who then sells to the customer.

Question 3

Two level

Answer 3

This occurs when there are two intermediaries between the producer and the customer. For example, a producer sells to a wholesaler who then sells to a retailer who then sells to a customer