The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without involving any intermediary. This is also called zero level channels. A straight and direct relationship is established between the manufacturer and the customer. For example, when a manufacturer sells his goods through his own retail outlets (e.g., McDonald, Bata); it is referred to as direct channel. Similarly, mail order selling, internet selling and selling through own sales force, (e.g., Eureka Forbes) are example of direct selling or zero level channel.
Direct Channel (zero level): Manufacturer --- Customer Indirect Channel
One level Channel: Manufacturer ------- Retailer ------------- Customer
Two level Channel: Manufacturer------------ Wholesaler ----------Retailer ----------Customer
Three level Channel: Manufacturer ----------Agent---------- Wholesaler---------- Retailer---------- Customer.
Participants