The following terms are used in relation to distribution channels:
Direct selling occurs when you sell products directly to consumers. Methods include catalogues, home parties, door-to-door selling, telephone sales and retail craft shows.
Indirect selling occurs when you sell to an intermediary, as opposed to an end user. Methods of indirect sales include selling your product to a retail store as well as using a wholesaler/distributor or broker/agent. Indirect sales can include club chains, hotels and institutions as well as any kind of retail shop.
Wholesaler and distributor are two different terms used to describe the same distribution channel. A wholesaler/distributor buys products from producers and normally sells the goods to retail stores.
When you use a wholesaler/distributor, you must still convince each individual store to stock the product. That's why it's best to use this distribution channel when you have detailed information about retailers or previous sales experience. A wholesaler or distributor usually represents complementary products and takes title of the goods. In most cases, you will be responsible for advertising and for getting listed with retail chains. However, a distributor may share some responsibility for promotions, especially for smaller retailers.
Broker and agent are two different terms used to describe the same distribution channel. Unlike the wholesaler/distributor, a broker/agent doesn't take title of products. Instead, he or she provides a sales force to sell your goods for you. You may want to use this distribution channel if your product falls into a mainstream category such as frozen food, dry grocery, deli or beverage.
When you're making decisions about direct selling/indirect selling, broker/agent or wholesaler/distributor, look at competitor practices and consumer needs.