A consumer is in a position to get a product/service through a distribution channel/marketing channel. This is because not all producers are in a position to make available their products/services to their customers/consumers directly, they have to use intermediaries/middlemen. These middlemen have contacts with the right customers, have excellent marketing expertise, and also offer shipping and proper handling services. These properties add value to the products they distribute. There is improved efficiency in the ordering , processing and shipping process as the intermediary knows how to align right products to the right consumers. Cost of distribution is reduced this is because customers are aware of the pricing of the products without having to bargain all the time as the transactions are a routine. These reduction of cost as products move from the producer to the consumer is a value addition also number of transactions between producer to consumer being reduced constitute value addition.

The six types of utility that a distributor would add are form, place, time, possession, information and service. A whole-seller is an example of a distributor who adds each of the six utilities. One can get assorted products in quantities he wants hence whole-seller uses form utility to assort products into smaller quantities as these changes the form it was from the producer, he offers place utility by having a storage area where products can be gotten at any time for steady supply using time utility. The whole-seller has personnel who offer service utility and the information required and finally possession is transferred to consumers when they purchase the products.