Conduction is heat transfer by direct contact. The higher energy atoms of a warm object directly vibrate the lower energy atoms of a cooler object. If I step on a warm sidewalk with no shoes, the warmer sidewalk transfers thermal energy to my cooler feet. Conduction is also how heat can transfer from one part of a material to another. Conduction requires a medium to transfer heat.
Watch the following video to see heat being transferred from one end of a metal rod to the other through conduction.