Cambridge IGCSE Business (0264) syllabus reference: 3.3.3
| Channel | Route | Advantages | Disadvantages |
|---|---|---|---|
| Direct | Producer - customer | Producer keeps all the profit; direct contact with customers | Producer must handle selling and delivery |
| Retailer | Producer - retailer - customer | Wide coverage; customers can see products | Retailer takes a share of the price |
| Wholesaler | Producer - wholesaler - retailer - customer | Wholesaler buys in bulk and stores goods; reaches many small shops | Lower price for the producer; less control |
| Agent | Producer - agent - customer | Agent knows the market, often in another country | Commission paid; less control over selling |