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This model is based on the ability of manufacturers to reach customers directly, cutting out intermediaries like wholesalers and retailers. It can result in significant cost savings, but these are not always passed on to customers. Some companies, such as Dell, concentrate almost entirely on direct sales to business and home customers.

Others, such as Apple, sell both directly to customers and via the normal wholesale and retail markets. There is some potential for conflict here as resellers may perceive the company as both a supplier and a competitor.

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