Sales Channel

Published by MBA Skool Team, Last Updated: May 28, 2020

What is Sales Channel?

Sales channels are the different ways of getting products or service to customers. Sales channels can be direct or in direct depending upon how products reach customers.


Importance of Sales Channel

There is little difference between a sales channel and a distribution channel, except for the fact that distribution channel has more to do with physically getting products across to consumers whereas sales channel is involved mainly in helping to increase sales. The type also defines the type of marketing to be done. If the channel is direct, then the type of marketing to be done is Business-to-Consumer or B2C marketing.

If the sales channel depends on an intermediary then a Business-to-Business marketing B2B is involved. However, if intermediaries play a major role, but final customer are individual people, then a combination of B2B and B2C marketing is involved.

 

Source: salesbenchmarkindex


The picture above depicts a typical hierarchy of direct sales channel with respect to value added and cost involved. As we can see, more personalized the channel, higher the cost involved.


Example of Sales Channel

For elaborating, we can take the example of ecommerce companies like Amazon, Flipkart, Caratlane etc. It is a jewelry website which delivers products to your house as per your order. Here, the website is one channel that they use to reach consumers. They also have the offer of trial at home, which is another channel- customer service. On confirming, the final order is delivered to the customer. Here caratlane uses different types of sales channel to reach out to the consumer.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

Search & Explore : Business Concepts



Share this Page on:
Facebook ShareTweetShare on Linkedin