The factors affecting a channel of distribution are as follows:

1. Product Characteristics : Seasonal products are distributed through less layer of middlemen. Non standardized products that are made according to customer specifications may be delivered directly.

2. Market Characteristics : The size of the market for the goods is a major factor while selecting the route for distribution of products.

3. Number of Consumers : Large purchases made by few consumers require centralised distribution. 

4. Middlemen factor : Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product. 

5. Capacity of the Manufacturer : A financially strong producer may select a high technology oriented channel which will reduce cost in the long run. 

6. Cost and Time Involved in the Channel of Distribution : The channel cost should go along with the quality of service provided by middlemen. 

7. Services Required along with the Product : Machinery or equipment which need to be installed and demonstrated should be sold with shorter channel.

8. Life Cycle of the Product : An established product can select an ordinary channel. But a new product entering into the market should be carefully promoted by experienced middlemen.