The direct market is the dominant distribution and retail network for American comic books. The concept of the direct market was created in the 1970s by Phil Seuling. The network currently consists of:

The name is no longer a fully accurate description of the model by which it operates, but derives from its original implementation: retailers bypassing existing distributors to make "direct" purchases from publishers. The defining characteristic of the direct market however is non-returnability: unlike book store and news stand distribution, which operate on a sale-or-return model, direct market distribution prohibits distributors and retailers from returning their unsold merchandise for refunds. In exchange for more favorable ordering terms, retailers and distributors must gamble that they can accurately predict their customers' demand for products. Each month's surplus inventory, meanwhile, could be archived and sold later, driving the development of an organized market for "back issues."

The emergence of this lower-risk distribution system is also credited with providing an opportunity for new comics publishers to enter the business, despite the two bigger publishers Marvel and DC Comics still having the largest share. The establishment and growth of independent publishers and self-publishers, beginning in the late 1970s and continuing to the present, was made economically possible by the existence of a system that targets its retail audience, rather than relying on the scattershot approach embodied in the returnable newsstand system.

Prior to the 1970s, most comics were found in newsstands, grocery, drug, convenience, and toy stores. A handful of early comic book specialty shops first appeared in the late 1960s, stocking back issues as well as sourcing new releases from newsstand distributors and the new counterculture underground comix. The oldest known such comics specialty shop in North America (or worldwide for that matter) has been Canadian comic book store Viking Bookshop, established in Toronto by "Captain George" Henderson in the spring of 1966, one year later renamed to "Memory Lane Books" when it relocated to other premises in the city. The oldest US comic book store is reputed to have been Gary Arlington's San Francisco Comic Book Company which was established in April 1968 in the namesake city. Neither store is in existence anymore, though the third oldest known one, the Dutch Amsterdam-based comic book store Lambiek (est. November 1968), still is as of 2022 – in the process becoming the oldest known comic book store still in existence. In the 1970s, the development of the direct market allowed a widespread network of comic shops to flourish. The specialty shop presented a number of competitive advantages:

Before the direct market, from the 1930s through the 1960s, most comic books were distributed through newsstands, pharmacies, and candy stores. The major distributors during this period included American News Company and Independent News, which was owned by National Periodical Publications, the parent company of DC Comics. Charlton Comics had their own distributor, Capital Distribution Company (not to be confused with the later entity Capital City Distribution).

In 1957, Atlas (later Marvel Comics), was forced to switch from American News to that of its biggest rival, Independent News, which imposed draconian restrictions. As then-Atlas editor Stan Lee recalled in a 1988 interview, "[We had been] turning out 40, 50, 60 books a month, maybe more, and ... suddenly we went ... to either eight or 12 books a month, which was all Independent News Distributors would accept from us." In 1968, while selling 50 million comic books a year, Marvel revised the constraining distribution arrangement with Independent News it had reached under duress during the Atlas years, allowing Marvel now to release as many titles as demand warranted. By 1970, Independent News was defunct, absorbed into a larger and changing distribution business.

The underground comix movement of the late 1960s was part of an alternative distribution network that also served the underground press, which proliferated in the mid-1960s. As underground comix were not sold in newsstands or drugstores, head shops played an important role as retailers of those publications. The underground comix movement was based in San Francisco and a number of distributors originated in the Bay Area, including the Print Mint (beginning c. 1969), the already mentioned comic book store San Francisco Comic Book Company (which doubled as a publisher, beginning c. 1970), Bud Plant Inc. (1970), Last Gasp (1970), Keith Green/Industrial Realities (c. 1970), and Charles Abar Distribution. Around 1970, underground distributors sprang up in various regions of the U.S., including Los Angeles — George DiCaprio and Nova — and the Midwest — Donahoe Brothers Inc. (Ann Arbor, Michigan), Keep On Truckin' Coop/Big Rapids Distribution (Detroit, Michigan), Wisconsin Independent News Distributors (Madison, Wisconsin), Isis News (Minneapolis, Minnesota), and Well News Service (Columbus, Ohio). By the mid-1970s, Big Rapids had acquired all of its midwestern competitors; by that time, the market for underground comix had essentially dried up.

The direct market was created in the early 1970s in response to the declining market for mainstream comic books on newsstands. Fan convention organizer and comic dealer Phil Seuling approached publishers in 1972 to purchase comics directly from them, rather than going through traditional periodical distribution companies. Unlike the newsstand, or ID (for independent distributor) market, which included drugstores, groceries, toy stores, convenience stores, and other magazine vendors, in which unsold units could be returned for credit, these purchases were non-returnable. In return, comics specialty retailers received larger discounts on the books they ordered, since the publisher did not carry the risk of giving credit for unsold units. Instead, distributors and retailers shouldered the risk, in exchange for greater profits.