Not every producer sells directly to the final customer. Indirect distribution uses intermediaries—wholesalers, retailers, agents, or distributors—to move products from manufacturer to end user. Each intermediary performs functions such as breaking bulk, providing assortment, offering credit, or supplying local market knowledge.

The choice of indirect channels allows a producer to reach more customers with less investment in sales force and logistics. The trade-off is reduced control over pricing, presentation, and customer experience, plus the margin that each intermediary requires. Channel conflict can arise when different intermediaries compete or when the producer also sells direct.

Designing an indirect distribution system involves selecting the right partners, defining territories and responsibilities, and aligning incentives so that each party benefits from growing the brand. In many industries the majority of volume still moves through indirect channels, even as digital tools make direct relationships more feasible.