Methods of distribution

Place

refers to where customers purchase the business products/services

Distribution channels

refers to the various intermediaries through which goods/services move from the business to the end customer

Three stage distribution channel

Moves the product directly from the producer to the retailer who then sells to the final customer. This channel is often used for products with high profit margins, where the manufacturer can afford to sell directly to the retailer and still make a profit

Two stage distribution channel

Moves the product directly from the manufacturer to the end customer. This channel is commonly used for products that are sold online or through direct sales channels and is referred to as e-tailing.