Distribution Definition

In business, distribution is the process of making a product or service available for purchase by customers. Distribution channels are the means by which a product or service is made available to customers.

There are two types of distribution channels: direct and indirect. Direct distribution channels involve a direct relationship between the manufacturer and the customer, such as when a company sells its products through its own retail stores. Indirect distribution channels involve an intermediary between the manufacturer and the customer, such as when a company sells its products through wholesalers or retailers.

The choice of distribution channel is an important part of a company’s marketing strategy. The selection of a particular channel will depend on factors such as the type of product or service being offered, the target market, and the resources and capabilities of the company.