Elvish Toys is a small-scale toy manufacturer. The company sells its products to customers at its own retail shops. In this scenario, it is evident that Elvish Toys sells its products to its customers through a

Direct channel of distribution

Explanation:

A direct channel of distribution refers to means or methods used by a company to sell its good straight to its customers without involving any middlemen or intermediaries like wholesalers and retailers. This is different from an indirect channel of distribution that involves middlemen or intermediaries like wholesalers and retailers to get the product of the company to the customers.

Under a direct channel of distribution, a company manages its own logistics, distribution personnel, warehouse, and trucks to get its product to its customers.

Advantages of a direct channel of distribution includes: the company is able to control all aspects of distributing its product; it enables the company to reduce inefficiencies; it provides the opportunity to add new services; and among others.

The only challenge with a direct channel of distribution is that the initial cost of setting it up can be huge, but that is no more a problem after it has been set up.

Therefore, Elvish Toys sells its products to its customers through a direct channel of distribution.