Distribution

What is distribution?

Distribution is how products move from the maker to the buyer. It covers both the selling and the delivery process. You might also hear it called product distribution. As more businesses sell globally, getting distribution right is key to keeping logistics smooth and customers happy.

What is a distribution network?

A distribution network, or distribution channel, is the route a business sets up to get its product or service to the customer. This route can be short or complex, depending on the business model.

One of the most common distribution networks today is ecommerce. In this setup, products go from the factory to a warehouse, then straight to the customer. Online stores allow companies to handle everything-pricing, packaging, and shipping-without face-to-face sales.

Ecommerce works well for both B2C and B2B. It simplifies how goods are sold and shipped, and it’s opened the door for smaller brands to reach a global market.

Types of distribution channels

There are two main types: direct and indirect.

Direct distribution means the company sells to the customer without any middlemen. Examples:

• A manufacturer selling through its own website
• An artist selling prints on Etsy
• A farmer selling produce at a market

Indirect distribution involves third parties-like retailers, brokers, or resellers. Examples:

• A cleaning products brand selling through supermarkets
• A course creator selling through affiliate sites or learning platforms

Businesses that want more control often choose direct channels. Those that need broader reach or don’t want to manage sales logistics may choose indirect.

Examples of distribution channels

Here are some common channels used in ecommerce and retail:

• Retail (in-store or online)
• Wholesale or distributors
• Direct sales (website or in-person)
• Sales teams
• Value-added resellers
• Sales agents
• Print catalogs
• Dealers or brokers

Choosing the right channel depends on what you’re selling, your budget, and how much control you want over pricing, brand, and customer experience.

Also Read:

• What is Double opt-in?
• What is cost per action (CPA)?
• What is the cost per thousand (CPM)?