Indirect Channels: When a manufacturer employs one or more intermediary to move goods 'from the point of production to the point of consumption, the distribution network is called indirect Channels. This may take any of the following forms:
(i) Manufacturer-Retailer Consumer (One Level Channel):
(a) The manufacturer supply goods directly to retailers who in turn sell to the ultimate consumers. In this channel only one intermediary (i.e. Retailers) is involved.
(b) This type of network enables manufacturers to cover wide area of market while retaining control over channels.
(c) It is suitable for specialty goods like expensive watches or appliances.
(ii) Manufacturer-Wholesaler-Retailer-Consumer (Two Level Channel):
(a) The manufacturer supply goods in bulk to the wholesalers who sell goods in relatively small quantity to the retailers who in turn sell these goods to the ultimate consumers.
(b) In this channel two intermediaries (i.e. wholesalers and retailers) are involved.
(c) It is suitable for convenience goods like soaps, tea, salt.
