The flow between you and consumers is broken down by four stages. You need to know the different distribution levels when looking to expand into new markets or switch up your distribution strategy.
Level Zero: The simplest of all is a level zero delivery channel. It involves a direct sale to consumers without intermediary from the manufacturers.
Level One: A level one channel contains a single intermediary between producer and user as the middleman. An example is a manufacturer-consumer retailer.
Level Two: When thinking about levels, connect the number to the number of intermediaries. A level-two channel, in this case, includes two intermediaries between producer and consumer. An example of this will be a wholesaler who sells to a distributor who sells to the customer.
Level three: This is where an agent or broker enters. Agents work on behalf of businesses and deal with wholesalers in particular. The wholesalers from here sell to retailers who then sell to customers.