Short Answer 
The answer outlines three distribution methods: direct distribution, where customers buy directly from the business; indirect distribution, which uses intermediaries like wholesalers and retailers; and hybrid distribution, combining both direct sales and third-party delivery services. Each method has unique advantages and complexities in terms of customer interaction and supply chain management.
Step 1: Understand Direct Distribution
Direct distribution occurs when customers purchase products straight from a business’ warehouse. This method allows businesses to maintain greater control over the sales process and establish a direct relationship with their customers. Key features include:
- Direct interaction between the customer and the business.
- Potential for better profit margins due to the absence of middlemen.
- Immediate feedback from customers regarding products.
Step 2: Explore Indirect Distribution
Indirect distribution involves using intermediaries like wholesalers and retailers to sell products to the end customers. This approach can widen market reach and provide additional sales support. Important components include:
- Wholesalers buy in bulk and sell to retailers.
- Retailers ultimately sell the products to consumers.
- More complex supply chain that can affect product pricing.
Step 3: Consider Hybrid Distribution
Hybrid distribution is a blend of direct and indirect methods. Companies sell their products through their own websites while using third-party services for delivery. This model offers flexibility and can help increase sales volume. Key aspects are:
- Online sales from the company’s website.
- Utilization of delivery services from other companies.
- Combines direct customer interaction with the logistical capabilities of third parties.