Direct distribution

Revision as of 18:31, 3 April 2019 by Pavlo Smereka (talk | contribs)
Direct distribution
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Methods and techniques

Direct distribution – one of the three basic distribution methods, where products (or services) are shipped straight from producer to customer. In other two methods manufactured item or service reaches final client through mediators (wholesalers or/and retailers). Direct channel of distribution is the shortest and the most uncomplicated form of product distribution.

Andrejić M. and Kilibarda M. define three types of direct distribution:

  • selling through catalog by mail or e-mail

In that situation, distribution activities can be realized either by manufacturer (especially when product is very specific and unique) or by any logistics company, which specifies on courier services.

  • e-commerce

From manufactures point of view everything looks similar to catalog selling; wider range of products can be sold, but less specific.

  • business to business

Commonly, big batches of industrial products (e.g. wire, gasoline) are sold directly from manufacture to manufacture (customer-manufacture is interested in as low as possible prices and transportation costs; also in best possible terms).

  • selling at public place

Sales could be realized directly at points of production (e.g. farms), through exhibitions events, etc.



Author: Pavlo Smereka