Channels of Distribution - JSS2 Business studies Lesson Note

Producer/Manufacturer: This is the origin point of the product. Manufacturers produce goods in bulk and then distribute them to wholesalers or retailers.

 

Wholesaler: Wholesalers purchase goods from manufacturers in large quantities and sell them to retailers in smaller quantities. They act as intermediaries between manufacturers and retailers, providing services like bulk buying, warehousing, and transportation.

 

Retailer: Retailers sell goods directly to consumers. They operate at the final stage of the distribution channel and provide a variety of products, convenient locations, and personalized services to consumers.

 

Consumer: Consumers are the ultimate end-users of the product. They purchase goods from retailers for personal use or consumption.