Direct selling is a method of marketing and selling goods and services directly to the consumers, at their homes or at any other location away from permanent retail premises, This is a shortest and simplest channel of distribution involving direct sale of goods and services by the producer to consumers without any middleman or intermediary.
Direct distribution is more suitable than indirect channels of distribution in following circumstances :
(i) Introducing a New Product : Consumers are not well aware about a new product. In direct distribution salesman helps them by informing about the new products introduced in the market. He tells them about the utility of the product and suggests the way in which the new products can satisfy their needs and requirements. He creates a demand for the new product by awakening desires in prospective customers.
(ii) Technical Nature of Product: When a company or firms makes very complicated or technically advanced products, it likes to sell these products directly which helps then to make the customers understand the product.
(iii) Cost Benefits : Direct channel of distribution cuts down the margin of middleman or intermediaries, which lowerdown the final cost of product and provide cost benefit to both the producer and consumers.
(iv) Faster Response : Direct channel of distribution enables producer to directly contact with consumers. This helps consumers as well as producers by creating direct link. Consumers are able to easily contact producers regarding queries and producers easily understand the needs of their customers. Thereby, direct selling enables faster response.