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Types
of Sales Channels - Direct vs. Indirect
Direct
Channels
-
Direct sales
- The most basic channel of distribution used by many small
businesses is to sell directly to the customer. An on-site store,
warehouse sales, door-to-door sales or arranging contracts with
a customer personally and shipping the product are all forms of
direct sales, with goods and services going straight from the
business to the consumer.
- Telemarketing/Mail
- Also a direct selling method, telemarketing and mail allow
you to reach a wider market over large distances, but involve
additional costs. Extra humanpower would be needed to make calls,
send out letters, and deal with inquiries.
- Internet
- Now widely used by a large percentage of businesses, the
Internet/e-commerce creates the sales power of telemarketing or
mail without the expensive humanpower requirements. A small business
can have a big presence with a good website, and may do more sales
through this medium that through other channels. Some businesses
are completely web-based, and use no other distribution channels
(eg. E-mail providers).
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