Explanation:

Under this system, distribution of goods is performed by middlemen or intermediaries like wholesalers’ stockiest distributions etc. There is one middleman like a Sole Selling Agent who distributes the goods through a number of middlemen subsequently or, there may be a number of middlemen when the producer distributes the products through a number of agents or wholesalers or even retailers. Retailer sells directly to the consumers whereas wholesalers sell through them.