Product Distribution

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delivery of the product to the purchaser

Once an organization has produced or procured, priced, and promoted a product, it then needs to deliver that product to the purchaser. Some distribution examples:

• Direct sale to the customer from the producer
• Wholesale distribution where the producer sells in large quantities only to an intermediary, not the end user
• Retail sales where a retailer will buy large quantities, but sell smaller quantities to individual customers
• Value added resale (VARs) where an organization purchases a product from a producer and, in turn, resells it to a consumer after adding additional products, services, or expertise.