Nature of the product: This factor includes physical characteristics of the product and determine how they going to impact a particular channel of distribution. It includes factors like Perishability, unit of product, weight of product etc. Nature of the market: It is very important to choose the proper channel according to the market. This includes factors like industrial market, size of order, number of prospective buyers and buying habits of customers. Middleman: For marketing channel, it is important to see the nature of middleman. Factors include cost of distribution of goods, services provided by middleman, greater volume of sales.