What is a direct distribution strategy?

What is a direct distribution strategy?

• A. The manufacturer sells directly to the end consumer.
• B. Uses intermediaries to reach customers.
• C. Relies on third-party logistics
• D. Sells only through retailers

Answer: (A)

Direct distribution is when the producer sells straight to the end customer without using intermediaries. This means the manufacturer might use company-owned stores, a branded website, or a direct sales force to reach buyers, keeping control of pricing, branding, and customer data. It’s the clearest way to define a direct channel because there are no middlemen like wholesalers or retailers involved. The other statements describe indirect aspects—relying on intermediaries, or outsourcing logistics as a separate service—rather than the channel structure itself.

Direct distribution is when the producer sells straight to the end customer without using intermediaries. This means the manufacturer might use company-owned stores, a branded website, or a direct sales force to reach buyers, keeping control of pricing, branding, and customer data. It’s the clearest way to define a direct channel because there are no middlemen like wholesalers or retailers involved. The other statements describe indirect aspects—relying on intermediaries, or outsourcing logistics as a separate service—rather than the channel structure itself.