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Distribution channel

Types of Distribution

Channel Level

At the two-channel level of distribution, two intermediaries are

used to distribute items from the manufacturer to the buyer. In

this case, wholesalers and retailers serve as a connection between

producers and customers, whereas this set up helps the producer

to reach a broad market segment. It is the most often used

distribution route for consumer goods.

Meanwhile, the three-channel level has three tiers of

intermediaries. The jobber purchases goods from the wholesaler

and resells them to smaller businesses that are not served by the

larger wholesalers.

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