The distinguishes types of retail outlets, with independent retailers, corporate chains, or contractual systems being the three general forms. wheel of retailing service level merchandise line product assortment form of ownership Drop shippers o own the merchandise they sell but do not physically handle, stock, or deliver it. o perform all channel functions and sell on consignment to retailers. take title to merchandise but sell only to buyers that call on them, pay cash for merchandise, and furnish their own transportation for merchandise. o have a small warehouse from which they stock their trucks for distribution to retailers. work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory