Number of Channel Levels
Category: Marketing
Distribution channels can be described by the number of channel levels. Each layer of middlemen that perform some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel. We use the number of intermediary levels to indicate the length of a channel.
All of the institutions in the channel are connected by several types of flows. These include the physical flow of products, the flow of ownership, payment flow, information flow, and promotion flow. These flows can make channels even with only one or a few levels very complex.