What is the difference between a direct and indirect distribution channel?

Direct Intermediaries-

* companies can sell directly to consumers or retailers without intermediaries. it also includes reaching Institutional buyers.

*Selling of product & services via internet.

*If product is technically complex this system can be preferred.

* Ex. Banking services, Health services, credit cards, petrol/diesel (companies own outlet), education etc.

Indirect intermediaries-

*Goods may move through a set of intermediaries. Most FMCG companies follow this.

*Intermediaries know the market very well when compared to manufacturers.

*Ex. consumer durables and pharmaceutical products, mobile phones etc.