Levels of Distribution

Producers - A producer supplies goods and services. Secondary.

Wholesalers - They sell products in bulks and at smaller prices. Economies of sales to retailers. Can offer advice and transport to retailers. Sell in large quantities which reducers unit cost.

Retailers - Shops that sell goods and services to final customers. Tertiary.

Levels:
Zero Level - no intermediary between producer and the customer. Sells direct to final buyer.
One Level - only one intermediary between producer and customer. E.G. retailer.
Two Level - two intermediaries between producer and customer. E.G Producer -Wholesaler - Retailer - Customer.