A manufacturer of beverages in Lagos sells its products to a wholesaler, who sells to a retailer, who finally sells to the consumer. This channel of distribution is described as

The number of levels in a distribution channel is counted by the number of intermediaries between the manufacturer and the final consumer. In this case there are two intermediaries — the wholesaler and the retailer — making it a two-level channel. A one-level channel would have only one intermediary, while a three-level channel would include an additional intermediary such as an agent.