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what is External sales channel?


External sales channel
External sales channel

The external sales channel is a process of selling your product. We can distinguish two types of process, the internal one and the external one. Nevertheless, the external channel is what we will be developing today, specifically on those who do not work directly with your organization.

In the external sales channels, you use third parties to sell your product or service such as; consultants, distributors, wholesalers, resellers, dealers, agents, independent, retailers, value-added provider, affiliate partners. External sales channel may seem as a golden coin in the pocket, yet it has a negative side on your business.

Starting with the external sales channel' cons. The first negative aspect in this process is that you will have less control in your product. For instance, when the parties don't stick to your instructions and act without your knowledge. The second aspect is the brand risk, if your partner doesn't respect your brand instructions. Another aspect, which is it will be harder to manage then the internal channel. Additionally, you will be exposed to fewer turnovers and less profits.

The last point is the conflict in management interest such as increasing prices or launching a promotion.

Moving to the external sales channel' pros.

The first positive side of external sales is the fast distribution of your products. In addition, you can consider the low cost of distribution as a plus. Last and not least, you will get a fast market penetration for your product or service.

To conclude, external sales channels can be as beneficial as harmful to your business, all you need to have is a good management and a good follow up and monitoring.

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