Channel sales refers to the establishment of partnerships with other companies or institutions to sell their products or services to final consumers or end customers. These sales channels can include wholesalers, retailers, distributors, agents, brokers, e-commerce platforms and other intermediate links. Compared with direct sales, channel sales have the advantages of wider sales scope, lower sales cost, faster market expansion speed and more stable cash flow.
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For example, if a manufacturer wants to sell their products to the end customer, they can choose to deal directly with the customer, eliminating the middleman, this sales method is called direct sales. However, direct sales require manufacturers to bear a lot of publicity and promotion costs, and the problems that need to be dealt with in the sales process will also increase, such as order management, inventory management, transportation and so on. Therefore, many enterprises choose to cooperate with retailers, dealers, agents, etc., to expand sales scope through channel sales, improve sales efficiency, and enjoy the profits shared with partners on sales channels.