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Channel of distribution (factors that affect the choice of choosing the…

- - - - Wholesalers buy large quantities of products direct from manufacturers and then sell these to customers in small quantities which this process is known as "breaking bulk"
  - - - The internet has created an alternative channel for producers to sell direct to the consumer, e.g. Amazon,
        Taobao and iTunes.
  - - - Fast moving consumer goods is an exmple of three level channel
- - - - However wholesaler add a mark-up to the price paid to a manufacturer and retailer enjoy lower prices-direct from manufacturer. Moreover if manufacturer sell direct to retailer, they can earn extra profit
      - Wholesaling uses its own transport and cover costs of
        transportation to retailers which is one of the advantages for manufacturer. Wholesaling will break up the bulk to sell smaller
        quantities to retailers, often on credit which is the advantage to a retailer