What type of distribution occurs when goods and services pass from the producer to channel members before reaching consumers?

The type of distribution that occurs when goods and services pass from the producer to channel members—such as wholesalers, distributors, or retailers—before reaching consumers is known as indirect distribution. This method involves intermediaries who play a vital role in getting products from producers to the end-users by facilitating sales and managing the logistics involved.

Indirect distribution is common in many industries because it allows producers to leverage the expertise and established networks of intermediaries, making it easier to reach a wider audience. By utilizing channel members, producers can focus on production while distribution experts handle marketing and sales efforts.

This approach contrasts with direct distribution, where products move directly from the producer to the consumer without intermediaries, and with retail distribution, which specifically refers to the sale of goods through retail outlets. Intermediate distribution, while it sounds similar, is not a standard term used in this context, making indirect distribution the most accurate choice.