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Essay / Direct Distribution Methods - 1429
An indirect distribution approach is a chain of intermediaries through which a product circulates in order to be made available for purchase by a consumer. An indirect distribution channel typically involves a product going through additional steps as it moves from the manufacturing company from distributors to wholesalers and then to retail stores (Business Dictionary, 2016). The use of intermediaries and indirect distribution allows a company to focus on the product like a computer and puts retailers in charge of distributing the product to customers already using the developed channels, allowing the company to 'save time and money. Indirect distribution allows retailers to use their existing skills, knowledge and resources to best fit the business, bringing computers to market, while sharing the risk of the product life cycle (Richardson & Gosnay , 2010). Indirect distribution allows the IT company to use the existing store network already established in the markets and use the resources of another company, thereby reducing the overall costs of the company. When the company uses intermediaries, who must be considered partners, upon payment of the order, the wholesaler or retailer takes title to the product and