Mainly, there are three levels in the structure of the distribution channel: they are direct channel, indirect channel and mixed channel.
1. Direct Channel
If the producers themselves distribute their products directly to the ultimate consumers, this is called direct channel. In this, no help of intermediaries or middlemen is taken.
2. Indirect Channel
If the producers take help of wholesalers, retailers, dealers, agents etc. to supply their products to ultimate consumers, this is called indirect channel. These intermediaries can be divided in two groups as business intermediaries and business agents.
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3. Mixed Channel
If the producers use both direct and indirect channels to supply their goods to customers, this is called mixed channel.
In this way, the producers can use direct, indirect and mixed channel to supply their goods or services to the consumers. For distribution of consumer goods, the main participants of the distribution channel are producers, agents, wholesalers and retailers. But for the industrial goods, the main participants of the channel are producers, industrial users, industrial distributors and agents.
