ABSTRACT
This chapter examines why intermediaries are fundamental to the distribution process; what is the channel selection process, and why is it critical to business success; how should the organization choose a retail intermediary; how does the organization negotiate a retail distribution arrangement; and when are online marketplaces an appropriate choice for distribution. The problem that distribution addresses is that the product may exist in one place while the consumer lives somewhere else. Intermediaries are the people and organizations that solve this problem. Tangible products may go through a distribution process using more than one intermediary. One distribution choice is to sell a product online. The decision of what channel to use for distribution will be based on both the location of the purchaser of the product and the location where the product is produced.
