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What is a sales channel?
A sales channel refers to the various methods, platforms, or pathways through which your company gets your products to your customers. Sales channels can encompass both physical and digital channels, and they play a critical role in your company’s overall sales and distribution strategy.
The two highest-level sales channels are direct and indirect sales. Direct sales involves selling products or services directly to your customers without intermediaries. It often includes your internal sales teams, showrooms, websites, or company-owned retail locations. On the other hand, with an indirect sales channel, a company sells its products or services through third-party entities such as distributors, resellers, or other partners. These partners can market, sell, and even service the products on behalf of the original company.
Which sale channel your company uses will depend on factors like target audience, the nature of your products or services, your company’s resources, and market trends. However, the majority of businesses use a combination of direct and indirect sales channels to reach their different customer segments and grow their business.
Related content:
Channel | Direct Channel | Indirect Channel | Indirect Distribution Channel
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