Types of distribution channels

  

  By Raúl Gorrín.-  We have already mentioned the importance of distribution channels. Now let us refer to the types that exist.

·         The direct channel: is the shortest. This channel takes place when a producer sells directly to the final consumer without the intermediaries’ intervention. This channel is the one used to sell services; here the sales are face to face or via Internet. The important thing is that there are no wholesalers present.

·         The indirect channel: the distribution process is carried out with the participation of intermediaries.

     According to the number of intermediaries involved for the delivery of the product is subdivided into:

·         Short: also known as tier-2, which is characterized because there is an intermediary. So, the product goes from the hands of the manufacturer to the distributor and from there, to the consumer.

·         Large: this occurs when the product changes hands at least three times (tier-3). From the manufacturer to the initial wholesaler who intervenes to distribute it, then is in the hands of a retailer and finally, the consumer. Likewise, it may happen that more intermediaries intervene. Because the product goes through the hands of storekeeper, distributors, marketers, resellers. Every link will increase the product value.

     When choosing a distribution channel, it is necessary to take into account some considerations, because the referred channels are the most common, they are not the only ones. In this sense it can be chosen, even the combination of these to repair to the characteristics of the market, the product and / or service and the company. It is essential to keep in mind that the greater the number of channels involved, the less controls of the process and the more complex the channel. The smaller the steps the product gives from the manufacturer to the consumer, the greater the economic burden on the manufacturer.

     It can’t be forgotten that the Internet can now intervene, which is more suitable and efficient for the purchase and sale of supplies and raw materials. In any case, it should be noted that it can’t be sold directly to the final consumer. In fact, there are very interesting options such as virtual stores in which the producer or the manufacturer are directly understood with the final consumer, something that happens at local, national or international level.

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