Matters of Distribution

The 3 Types of Product Distribution and Why They Matter

By: Kimberly Grant

Let’s talk distribution.  There are various forms of distribution that a seller or producer can use to get their products into the hands of consumers.  The technical definition of a distribution channel is activities and processes required to move a product from producer to consumer.  It’s basically the channel you use to sell a product.

There are three main types of distribution channels: direct, indirect, and dual. 

Being Direct

Direct distribution is when the manufacturer or business sells the product directly to the consumer.  An example of direct distribution is when you watch a Netflix original on your Netflix app.  Netflix is the manufacturer and the distributor of the series or movie you’re watching.  Simple, right?

Indirect Enjoyment

It would stand to reason that indirect distribution is a little more complicated.  It sort of is.  Indirect distribution is when an intermediary (read: middle man) sells a product to the consumer on behalf of the manufacturer.  An example of indirect distribution is self-publishing.  I have self-published four novels and one novella on Amazon.com.  In order for me to get my product (my books) to the consumer, the consumer has to interact with Amazon.  Amazon distributes my books to my readers once they pay a fee.

Mysterious Duals

Lastly, there is an option for dual distribution.  This is a combination of direct and indirect selling.  Think, Disney.  Yes, I know.  I refer to Disney a lot.  That’s because they own a lot of great companies and produce a lot of great content.  Disney is a distribution company and a manufacturer.  Here’s how Disney utilizes the dual distribution approach.

When Disney holding, Marvel Entertainment, released Black Widow they used a dual approach; which landed them in hot water with movie theater chains and Scarlett Johansson.  Disney distributed Black Widow indirectly to retailers (read: movie theaters).  The consumers were able to enjoy the film in movie theaters on the big screen.  Then, Disney distributed the same film on its streaming service, Disney+.  This was a direct distribution as Disney was the manufacturer and the distribution channel in which consumers enjoyed their content.

So…?

Why is distribution important, you ask?  When I first set out to self-publish, I had to make a decision about how potential readers would get to my novels.  I researched various distribution channels, including printing presses.  However, Amazon became the best choice because I didn’t have to spend any money up front to get my product into the hands of the consumer and the site offers in-house promotional opportunities.  So, distribution does matter.  It also makes it easier to be a budding self-published novelist extraordinaire.

Wondering what other posts I’ve distributed on this site?  You can see my last post here.