Distribution channels are crucial to delivering your product to consumers. Discover the three primary types.
The manufacturer delivers products directly to consumers, offering total control over the channel and often lower prices due to lack of intermediary commissions.
An example of Direct Distribution is catalog sales, where the manufacturer alone is responsible for delivery. However, the customer volume might be limited due to this approach..
This approach allows for larger sales volumes but often leads to higher product prices due to commissions..
While manufacturers partner with intermediaries, they maintain control over customer contact.
An instance of Hybrid Distribution is when brands promote products online but nominate authorized distributors for delivery.
Understanding your distribution channels is crucial for effective product delivery. Whether Direct, Indirect, or Hybrid, each model offers unique benefits and challenges.