Explain How Distribution Channels Add Value

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The Answer is Distribution channels are composed of various entities that are buying, such as retailers or wholesalers; selling, such as manufacturers or wholesalers; or helping facilitate the exchange, such as transportation companies.Like interactions between people, these relationships can range from close working partnerships to one-time arrangements.In almost all cases though, they occur because the parties want something from one another.
Distribution channels perform a variety of transactional, logistical, and facilitating functions.One important role played by intermediaries is to reduce the number of marketplace contacts, resulting in more efficient systems.Intermediaries also match the requirements of individual consumers to the goods that manufacturers produce; handle physical distribution and storage of goods, making them available for customers to purchase; facilitate searches by both buyers and sellers; and standardize exchange transactions.While channel functions may shift from one intermediary or channel member to another, it's important to recognize that they cannot be eliminated.

Explain How Distribution Channels Add Value

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