This essay focuses on manufacturers at a lower price than other. In the direct distribution channel, goods are move directly from the Producer to the Consumer.

manufacturers at a lower price than other

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There are two high-level types of distribution channels, direct and indirect. In the direct distribution channel, goods are move directly from the Producer to the Consumer. In the indirect distribution channel, the producer will meet consumer demand through third –party wholesalers and/or retailers. Direct channels produce short supply chains, indirect channels produce long chains.

Wholesalers buy products from manufacturers at a lower price than other businesses because they receive discounts for volume buying. They make money by selling these products to retailers for more than they paid, but still at a better price than the retailer can get directly from the manufacturer.

For example, a small business buying 100 dolls per month.  To sell in its store might have to pay $10 per doll to buy directly from the manufacturer. If the doll is sold for $12, the retail store makes only $2 per doll.

Research and report on two large producers, Costco and Apple, and describe in detail which distribution approach each company uses — direct, indirect, or mixed – for at least two products in each company.
Your APA paper should be at least 1,000 words in length.

A wholesaler is essentially a middleman between a manufacturer and a retail establishment. Wholesalers obtain large quantities of products at a lower price and sell them to retailers or other businesses, which sell them from their e-commerce sites or storefronts, usually to end consumers.

While the most common type of wholesaling is between manufacturers and retailers, an increasing number of wholesalers sell to other wholesalers. A wholesaler may also sell materials to make goods, buying them from one manufacturer, and selling them to another.