The main routes

  • Direct store delivery: the producer or its distributor delivers straight to each outlet.
  • Wholesale: a wholesaler buys the product and sells it on to outlets, delivered or by collection.
  • Cash and carry: outlets collect the product from a trade depot.
  • Retailer central distribution: the producer delivers in bulk to a retailer’s warehouse.
  • Direct to consumer: the producer sells online or through its own delivery.

Choosing a route

Each route trades control against cost. Delivering direct means seeing the shelf and keeping the relationship, but paying for every drop. Selling through a wholesaler costs margin, but reaches outlets a producer could never serve alone.

The right mix depends on the outlet. A large account may justify a direct route. A remote independent may be reachable only through a wholesaler.

Why the term needs care

Outside distribution, RTM is also short for “right to manage” in leasehold property. In sales, route to market always means the channel a product reaches its buyer through.