Indirect distribution
Indirect distribution involves a manufacturer or brand using external channels and parties to sell and distribute products or services. Indirect distribution involves at least one external party in distribution to the end customer, or consumer. These distribution partners can be, for example, web shops or physical stores or chains.
Unlike direct distribution, the customer does not do business with the manufacturer but has a relationship with an intermediary party. This party is responsible for sales and (first-line) support. The selling party itself may be responsible for inventory and purchasing. Stock and delivery may also be provided by the manufacturer or outsourced to a party acting as a supplier or importer.
In indirect distribution, the distribution channel (the supply chain between manufacturer and buyer) is longer than in direct distribution. The involvement of one or more intermediaries affects the (distribution of the) margin. On the other hand, the parties involved (including the manufacturer) can focus on their specific share in the chain.
The field of trade marketing deals with marketing activities aimed at increasing demand and visibility within external channels.
