Definition of Distribution channel:
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.
The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer. Also called the channel of distribution.
Distribution channels are part of the downstream process, answering the question "How do we get our product to the consumer?" This is in contrast to the upstream process, also known as the supply chain, which answers the question "Who are our suppliers?".
How to use Distribution channel in a sentence?
- You need to know the right distribution channel and how to effectively use it to get the most out of your product.
- Distribution channels include wholesalers, retailers, distributors, and the Internet.
- In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.
- A distribution channel represents a chain of businesses or intermediaries through which the final buyer purchases a good or service.
- The distribution channel was mentioned during the meeting as we wanted to ensure optimal efficiency involved in the shipping process.
- The distribution channel was open and it allowed free trade and consumption, which gave all of us owners a happy feeling.
Meaning of Distribution channel & Distribution channel Definition