There are a number of channels of distribution available to the producer that may be employed by persons or companies to bring products to the market. Consumer goods may be distributed through channels. The channels used are producer-consumer, and there is no middleman involved. Sales are made from house to house or by direct mail. Point of sale software provides the best benefits that programming technology and client/server databases have to offer to retailers. It is designed with a high degree of proficiency that allows the user to access data and ask questions about the database.

Secondly, producer-retailer-consumer are when goods are purchased directly from manufacturers or retail stores opened by manufacturers. Thirdly, producer-wholesaler-retailer-consumer is the traditional and most economically used channel. There is also producer-agent-retailer-consumer channel, whereby producers use manufactures agents and brokers to reach the retail market. Finally, the producer-agent-wholesaler-retailer-consumer channel uses the services of agents by smaller retailers who purchase from wholesalers and sell to small stores.

A large number of channels of distribution are available to the manufacturer to bring products to the consumer. Efficient distribution at the least cost and at the desired volume of sale can be secured only after experience, study and analysis.

A retailer does retailing by selling to consumers. In the distributional hierarchy, retailers are below the level of distributors or wholesalers. Sometimes, retailers are termed dealers or authorized representatives. The retailer often operates in a smaller territory or at a specific location and earns less commission compared to higher levels in the channel.