Indirect distribution channel
A manufacturer sells their products to a wholesaler/retailer who then sells it to the customer
An indirect distribution channel is a distribution strategy where a product or service is sold to the end-user through an intermediary or middleman. These intermediaries or middlemen can include wholesalers, agents, brokers, retailers, and distributors.
In an indirect distribution channel, the manufacturer or producer of the product sells its goods or services to one or more intermediaries who further distribute the product to the end-user or consumer. For example, a clothing manufacturer may sell its products to a retailer who then sells the clothes to the end consumer.
Indirect distribution channels can offer several advantages to businesses, including wider geographic coverage, increased sales and revenue, and reduced costs and risks associated with managing multiple sales channels.
However, there are also some challenges associated with indirect distribution channels, such as loss of control over the product’s marketing and pricing strategies, increased competition, and difficulty in ensuring consistent delivery and quality of the product or service.
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