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GCSE Business · key term
A business between the producer and the final customer that helps distribute a product, such as a wholesaler or retailer.
Used by AQA, Edexcel and OCR
Paper 2
A business between a producer and the final customer that helps distribute or sell a product, such as a wholesaler or retailer.
Revise: Distribution ChannelsWith indirect distribution, other businesses sit between the producer and the customer. These businesses are called intermediaries. The main ones here are retailers and wholesalers.
Specification 2.2.4 · Paper 2
A business between a producer and the final customer that helps products reach customers, such as a retailer.
Revise: Distribution ChannelsThe retailer is an intermediary: it sits between the producer and the final customer. For example, Toshiba laptops can reach customers through Currys.
Paper 1
Revise: Distribution ChannelsA producer can sell directly or use intermediaries: businesses between the producer and the final customer. Wholesalers and retailers are two important intermediaries.
Do not assume that removing intermediaries always increases profit. Direct selling avoids their margins but gives the producer responsibility for selling and serving customers.
Selling directly removes intermediaries, but does not remove every distribution cost: the producer may still need storage and delivery.
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