Channel of Distribution – Definition of Distributive Trade

What is Distributive Trade?

The term distributive trade simply refers to the various stages through which finished products pass before getting to the final consumer. Distribution is part of production it makes goods and services available to the final consumer.  

The Channel of distribution is the movement of goods and services from one place of production to another. We have the direct stage from the manufacturer to the consumer and the indirect stage of distribution which involves the intermediaries between the manufacturer and the final consumer.