Channel of Distribution

intermediaries

Middleman business involved in sales transactions that move products from the manufacturer to the final user.

agents

One who acts as an intermediary by bringing buyers and seller together. Sometimes also referred to as a broker.

rack jobbers

One who manages inventory and merchandise for retailers by counting stock, filling the shelves when needed, and maintaining store displays.

drop shippers

One who owns the goods he or she sells, but does not physically handle the actual products,

e-tailing

Online retailing that involves retailers selling products over the Internet to customers.

Channel of distribution

The path a product takes from its producer or manufacturer to the final user.

control

The power to direct or determine.

maintain

To keep a certain state, position, or activity.

exclusive distribution

Using a single outlet in a fairly large geographic area to distribute a product

retailers

A business that buys goods from wholesalers or directly from manufacturers and resells them to consumers.

wholesalers

A business that obtains goods from manufacturers and resells them to organization users, other wholesalers, and retailers, auto called distributors,

indirect distribution

A channel of distribution that involves one or more intermediaries.

direct distribution

A channel of distribution that occurs when the producer sells goods or services directly to the customer with no intermediaries.

commission

A fee for services rendered based on a percentage of an amount received or collected or agreed to be paid (as distinguished from a salary).

brick-and-mortar retailers

A traditional retailer who sells goods to customers from a physical store.

integrated distribution

A type of distribution in which manufacturers own and run their own retail operations, acting as wholesaler and retailer for their own products.

automatic

Acting or operating in a manner essentially independent of external influence or control.

e-marketplace

An online shopping outlet.

freight forwarder

An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.

selective distribution

Distribution in which a limited number of outlets in a given geographic area sell a manufacturers product.

intensive distribution

Distribution that involves the use of all suitable outlets to sell a product.