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Review of marketplace channel structures

Marketplace channel structures describe the way a manufacturer or organisation delivers 

products and services to its customers. Typical channel structures between business and con‑

sumer organisations are shown in Figure 2.6.

A distribution channel will consist of one or more intermediaries such as wholesal‑

ers and retailers. The relationship between a company and its channel partners shown in 

Figure 2.6 can be dramatically altered by the opportunities afforded by the Internet. This 

occurs because the Internet offers a means of bypassing some of the channel partners. This 

process is known as