When you create a store online or offline, you just wait – when are your target customers going to buy your products or when your sales will take a hike? And that’s where comes Sales Channels which can help you Sell Online and grow multifold. Selling products online and growing business exponentially is only possible if you choose best sales channels in current year.

Selecting a sales channel is very important for any business. In the market there are plenty of sales channels which you can grow your business with, and, they can make you understand the reflection on your profit.

There are a handful of Sales Channels that a business can choose according to its requirements. Which type of sales channel you’re going to choose will surely impact the health of your business.

In this article, we will talk about “What a Sales Channel is?”, “Direct and Indirect Sales” as well as “Types of Sales Channels” and what Sales Channel should you choose in 2023 to sell online and grow business exponentially. Along with that, this article will also walk you through PROS and CONS of Sales Channels.

 

Table of content

1. What is a Sales Channel?
2. Direct and Indirect Sales
3. 7 Types of Sales Channels
4. Conclusion

 

What is a Sales Channel?

 

A sales channel is a method that any business uses for selling a product and services. Many companies use one sales channel such as third-party retail, and many other companies also choose multiple channels for selling purposes.

However, many sales teams choose a different strategy where some products and services are available widely and many others are accessible through a certain channel.

 

For example-

Suppose clothes manufacturers only sell t-shirts in their stores, while other clothing options are available in the online store.

Moving forward, many businesses opt for a Multichannel Sales Strategy to become stronger as a company as well as to meet the requirement of the customers.

Furthermore, Omnichannel retail has become standard in today’s society. This phrase, also referred to as Omnichannel eCommerce, is a business approach that offers customers a smooth purchasing experience across all sales channels, such as in-store, on marketplaces, on social media, and through resellers.

So companies may choose to sell their goods through direct or indirect sales; depending on their preferences and requirements. It’s worth noting that below mentioned Sales Channel types specifically vary in direct and indirect selling. We will talk about the same, keep on reading.

 

Direct and Indirect Sales

 

Direct sales are that sales when a business offering its goods and services directly to the customers, there is no middleman or any distributor. It is B2C (business to customers), and same goes for online store selling as well.

Indirect sales are that sales when business involves the third party such as resellers, an affiliate, wholesalers, and retailers. Indirect sales can hire sales person, it also reduces workload and helps in making the business effective. It also helps in increasing network marketing.

 

 

7 types Sale channels You Should Know in 2023

 

• Ecommerce
• D2C (Direct to Customers)
• Modern Marketplaces
• Retail
• Resellers
• Wholesale
• White label

 

Direct Sales Channels

 

1. Ecommerce

 

 

Any shopping that happens from Myntra, Amazon or online-selling through Ecommerce platform such as QPe is called e-commerce sales channel. When you order medicine online is e-commerce. Anything that happens online is e-commerce.

By 2025, eCommerce (an industry with a value of over $5 trillion) is predicted to account for 24.5% of all worldwide sales.

 

PROS-

 

• Cost is very low, you don’t have to pay for storage and you can give services to your customer 24/7.
• You can also know about the customer’s requirements based on research on the online market.

 

CONS-

 

• If your business’s distribution channel is not up to the market then the relationship between your customer and your business might be in trouble.
• People still prefer going to the physical store though e-commerce stores are popular & if your customers don’t like your product then chances of return are high.

 

2. D2C (Direct to Customer)

 

Your clients can only make a direct purchase from you when you sell directly to consumers (DTC). DTC tactics place a lot of emphasis on offering top-notch products and services and a top-notch client experience.

In other words, include ecommerce websites, apps, and direct sales by phone.

 

Above infographic shows that the total addressable market under D2C is expected to reach $100 Bn in 2025.

D2C relies heavily on word-of-mouth advertising and a sizable marketing expenditure to draw in new clients.

 

PROS-

 

• You will full control over your customer experience and services 
• Can have good relationship with customers and if customer like your products or services, it will gain your brand loyalty and high customer lifetime value.

 

CONS-

 

• You must handle all aspects of your marketing on your own; you cannot share this responsibility.
• The marketing expenses must also be covered by you.

 

3. Modern Marketplaces

 

Social media platforms as a modern marketplaces is great place where you can post content of your brands. By selling thorough Social media platforms like Instagram-Facebook, TikTok and others; you can get immense amount of brand visibility and new customers, too.

 

 

Social media is the most effective Sales Channel for the time being.

The main reason of the these platforms are very successful because a good amount of consumers/customers or the buyers are presented there, they just need to click one button on-the-go to buy your product and get it shipped right away.

 

PROS-

 

• Getting exposure in the online field.
• Apps that can help you to track your reach & post , plus you can collaborate with influencers which raise will sales.

 

CONS-

 

• You will require lots of skill to engage your customers.
• You will be needing courage to face the negative feedback.

 

Indirect Sales Channels

 

4. Retail

 

Retail sales channels are the perfect opportunity to create a good relationship with the customers face to face and they can give upfront feedback to you and from this you can improve your services or products. Retail is very powerful in terms of communicating with customers.

 

 

Retail shops can be stores in mall, stores in vegetable market or a physical or online grocery store.

 

PROS-

 

• No communication gap between the shopkeeper and the customers
• No middlemen required, you can get the products directly.

 

CONS-

 

• Extra expenses of sales person
• You can deal with disloyal staff and misuse of your products.

 

5. Resellers

 

A reseller is who adds value to a product and sells it for more money. A product can be given more value by joining forces with a well-known shop, having the product packaging done right way or repackaged, and even by improving the product itself.

 

 

PROS-

 

• By collaborating with resellers in other areas or nations, you can gain access to new markets.
• Having your product or service associated with well-known or respected brand names will help you establish credibility.

 

CONS-

 

• Prices can be fluctuate as it is depends upon your products
• Profit margins will also fluctuate, it won’t be constant

 

6. Wholesale

 

Wholesalers are the sellers who will sell goods to other shops and they will then sell it to the customers.

Some companies decide to use wholesale as their sole Sales channel, whereas others use it as a component of an omnichannel sales strategy.

A wonderful approach to transfer a lot of goods at once is through wholesale.

 

PROS-

 

• It is extremely profitable.
• You can sell large amount of goods at once which will meet your consumers needs.

 

CONS-

 

• You will be needing big space and lots of capital for the goods.
• No direct interaction with the customers.

 

7. White label

 

White label goods are marketed and sold by retailers under their own branding, although they are actually made by a different company.

 

 

When a manufacturer chooses to use a customer’s or marketer’s branding over its own, the practice is known as white labelling. The finished product has the appearance that it was made by the buyer.

 

Example-

Milton as brand is very famous and you will find its steel water bottles, tiffin etc. in every second shop.

 

PROS-

 

• You just need to focus on selling the products without worrying about manufacturing.
• Production cost is very low

 

CONS-

 

• This is a high competition place
• Anyone can make 2nd copy from original brand.

 

Above mentioned are seven Sales Channels which any business can adopt for running their sales and gain profits manifold.

 

CONCLUSION

 

To provide sales and services to the people, you need to know the basics. Which means high products and services quality and high value of your company towards the society. You may choose any sales channel, if your product and services are not efficient, it is not going to work.

When you have good CRM (Customer Relation Management); your business will surely scale. No surprise, when you have good sales team or you know how you will handle the sales; the growth of your business will rise and nothing can stop it.

If you choose multi-channel marketing for your business, you must make sure that your goods and services are suited for the channel’s target market and that you have a solid sales plan and marketing management in place for potential clients. You must identify the sales channels that best serve the demands of your company because each has a distinct purpose.