The most indirect channel for consumer goods incorporates agents, wholesalers, and retailers and is most commonly used when:

Question

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When there are many small manufacturers and many small retailers, it can be inefficient and costly for manufacturers to distribute their products directly to retailers. Therefore, agents, wholesalers, and retailers are used as intermediaries to streamline the distribution process. This indirect channel allows manufacturers to consolidate shipments to a smaller number of intermediaries who can then distribute the products to a larger number of retailers.

The Most Indirect Channel for Consumer Goods Incorporates Agents, Wholesalers