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There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels. Each of these channels consist of institutions whose goal is to manage the transaction and physical exchange of products.

Direct distribution channels are those that allow the manufacturer or service provider to deal directly with its end customer. For example, a company that manufactures clothes and sells them directly to its customers using an e-commerce platform would be utilizing a direct distribution channel.

Common Direct Distribution Channels Include: Physical sales conducted in a retail store. Online sales which allow you to distribute products directly across the world and are quickly becoming one of the most popular direct channels. Telemarketing sales which allow you to reach and distribute to consumers.

Exclusive distribution is an agreement between a supplier and a retailer granting a retailer or distributor exclusive rights within a specific geographical area to carry the supplier's product.

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Independent contractors are not eligible for workers' comp coverage, because an employment contract and employment relationship do not exist. While there usually is a contract, it is of a completely different nature. An independent contractor provides services, but there is not an employment relationship.