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Exercises · Q10

Q.Explain the direct and indirect channels of distribution, with a brief example of each.

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A channel of distribution is the route or path through which goods — and the ownership of goods — pass from the producer to the final consumer.

Direct channel: the producer sells straight to the consumer, with no wholesaler or retailer in between. Example: a farmer selling vegetables directly to households at a local market. This cuts out middlemen's margins but places the whole burden of storage, selling, and reaching scattered consumers on the producer alone. …

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