Explanation:

An indirect distribution channel relies on intermediaries to perform most or all distribution functions, otherwise known as wholesale distribution. The most challenging part of indirect distribution channels is that another party has to be entrusted with the manufacturer's products and customer interaction. However, the most successful logistics companies are experts at delivering receivables in a way that most manufacturers cannot be.

Indirect channels also free the manufacturer from any startup costs. With the right relationship, they are much simpler to manage than direct distribution channels. Indirect distribution channels add layers of cost, vendors, and bureaucracy. This can increase the cost to the consumer, slow down delivery, and take control out of the manufacturer's hands. On the other hand, indirect distribution could bring in new levels of expertise. A manufacturing company is not a shipping company. While a company may be an expert in manufacturing a certain good, shipping it efficiently is a different area of expertise.