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Channels of distribution refers to the path that goods and services take from a vendor to a consumer. It can involve several intermediaries such as wholesalers, distributors, agents, and retailers. Each intermediary receives the product at one price point and moves it to the next higher price point until it reaches the final buyer. Coffee, for example, passes through farmers, exporters, importers, distributors, and retailers before reaching consumers. Common channels of distribution involve producers selling to wholesalers who then sell to retailers who sell to customers. Some products like toothpaste, salt, and wheat are sold directly from producers to customers without intermediaries.
















