One intermediary: A retailer buys goods from producers to sell to consumers. Businesses tend to prefer this channel because it allows them to purchase large quantities of goods directly from the producer.

Producer â†’ Intermediary 1 (Retailer) â†’ Consumer


This type of channel is used often for selling new boats, trailers and automobiles, for example. Non-store retailers such as mail order companies most commonly use it too.

Note: Many retailers that once had mail-order components, no longer do so. Instead, they now include e-tail store fronts. This allows customers access to greater inventory. For example, rural Home hardware stores tend to be small, with limited stock. Customers, however, can select items online from a large supply center and have these items quickly delivered locally.

Some non-store retailers still have catalogue and online sales (e.g., L.L. Bean).