Direct distribution differs from sales channels distribution in that products go straight from the producer to the user, instead of indirectly through sales channels.

Direct distribution places the burden of marketing products on the producer.  This can be accomplished through any number of means.  For example, a company could use periodic brochures or catalogues to advertise their products through the mail.  Land's End is an example of such a company.  Periodic advertisements for special can be sent in the mail.  Local grocery stores, restaurants and retail stores regularly distribute such advertisements through the postal service.  Using sales representatives who solicit business and oversee other direct efforts in a local area also qualifies as direct marketing.  Basically any effort made by the producer to get their product into the hands of users falls under direct distribution.

The advent of the internet has not only made direct distribution more viable for large scale producers, but also feasible for small time producers.  In addition, the internet allows producers to tap into global markets.  For nominal fees, producers can use sites like Amazon or Ebay to advertise and sell their products.  Alternatively, producers can avoid these fees by creating their own website to market and sell their products.  The internet allows for various approaches to direct distribution.

Producers who do not wish to directly distribute their products may employ the services of distributors to do so.  Distributors in turn sell their purchased inventory to wholesalers or retailers.   The indirect flow of distribution results in markups in product price, as each agency in the sales channels requires economic incentive to participate.  Producers must be aware of the distributors relative level of incentive for pushing their product, especially when a competitor uses the same distributor.

The decision to use direct distribution over indirect distribution through sales channels depends almost entirely on the producer's objectives.  Direct distribution tends to require more capital to establish, but yields greater control of product distribution.  Indirect distribution tends to require less initial investment but tends to result in less producer control.  Also, indirect distribution also tends to result in greater market coverage.  So once you've determined your objectives (greater control vs. greater market coverage) you can make informed decisions on how to achieve them using direct distributions, the services of distributors, or a blend of both.