distribution channel

  

Definition

The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer. Also called the channel of distribution.

Use this term in a sentence

  • The distribution channel was open and it allowed free trade and consumption, which gave all of us owners a happy feeling.

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  • You need to know the right distribution channel and how to effectively use it to get the most out of your product.

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  • The distribution channel was mentioned during the meeting as we wanted to ensure optimal efficiency involved in the shipping process.

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