The revenue sharing contract was studied in two-echelon distribution system including multiple retails.The problem that the revenue sharing contract can avoid double marginalization in a traditional decentralized decision-making supply chain was analyzed.It was proved that the efficiency of the supply chain can be guaranteed to reach that of a centralized decision-making supply chain by choosing parameter and the range of parameters were presented.The improvement of Pareto in the supply chain can be assured.The above conclusions were verified by numerical examples.