What does channel sales mean?

Business management courses and management bestsellers define channel sales as sales in the form of channels, which mainly refers to how to develop and select distributors, their daily management, and how to assist distributors in marketing and daily maintenance. And can put forward corresponding 5P strategies according to market changes, effectively encouraging dealers to grow together in the sales process.

Channels are equivalent to canals and aisles, and are carriers for connecting and carrying products and services. The two ends of this carrier can be enterprises-dealers, agents, wholesalers and large retail terminals; It can also be a regional agent, wholesaler, distributor-a secondary or tertiary or even smaller distributor or a couple's wife's shop. In short, consumers of final products and services do not get them from the original manufacturers.

Sales channel is one of the most important assets of an enterprise, and it is also the most changeable asset. It is the path taken by enterprises in the process of delivering products to consumers. This path includes sales organizations, agents, distributors and retail stores set up by enterprises themselves. For products, it is not to add value to the product itself, but to increase the added value of the product through services; For enterprises, sales channels play the role of logistics, capital flow, information flow and business flow, and complete tasks that manufacturers are difficult to complete. Enterprises with different industries, different products, different scales and different stages of development have different forms of sales channels, and most sales channels go through these two links from dealers to retail stores. In order to meet the needs of retail stores and maximize their own profits, few dealers only represent one product, but have their own product portfolio.