channel of distribution

Channels of distribution :-

The channel of  distribution means the route which products follow from the point of production to the point of consumption. The channel of distribution includes wholesalers. Retailers, agents and distributors. They become the trade link between the producers and consumers or industrial users. The large scale production has become possible due to division of labor. The mass production demands mass distribution and sales. The middlemen act as channel for distribution of goods from the manufacturer to the consumer or users. The goods may be divided into two categories, which include consumer goods and industrial goods. The manufacturers have the right to distribute the goods directly to the consumers or users. They may like to sell the goods to the wholesalers. The agents can be appointed to deliver products in market when the wholesalers do not accept the terms and conditions of sale fixed by the manufacturers. There may be one middleman between the producer and consumer or user. The success in business depends upon the proper delivery of goods through suitable channel members