Direct distribution means selling products directly from producer to consumer, with no intermediaries. A farmer selling vegetables at a market stall is using direct distribution. So is a software company selling subscriptions on its own website. The producer keeps the margin that would otherwise go to a wholesaler or retailer.

The model has advantages. The producer controls pricing, branding, and the customer relationship. They get direct feedback and can build a loyal following. Direct distribution also works well for digital products, where there is no physical inventory to ship. A musician selling downloads from their own site is cutting out the record label and the streaming platform.

The challenge is reach. Intermediaries exist because they solve distribution problems. A retailer has stores, staff, and customers. A wholesaler has logistics. Without them, the producer has to build all of that themselves. That is expensive and slow. Direct distribution works best when the producer already has an audience, or when the product is digital and the infrastructure costs are low. For physical goods at scale, intermediaries often earn their keep.