The critically important aspect of international trading and sourcing is the build-up of the best-matching sales channels. Businessmen should know how to distribute their goods profitably. It is worth noting that there are several types of sales channels to consider.
KEKC decided to dive into this topic and guide present-day entrepreneurs through all the peculiarities of distribution worldwide in 2023. Keep track of our blog posts to find more helpful information for your retail business or other international trading and sourcing projects.
7 Types of Sales Channels to Consider in 2023
Speaking about sales channels in 2023, the number of them is still the same. There are 7 ways to distribute your goods efficiently for your business and profit margins. Let’s take a closer look at them to know all the strengths and weak spots of each sales channel from the list:
- Resellers – there is a parent company that provides resellers with the product lines for distribution activities. The dropshipping margin can be considered one of the reselling practices to take into consideration.
- Affiliate partners – these parties launch various marketing programs to get some commissions through sales. This sales channel is viral among top-ranking sellers and parent companies who offer their goods for export.
- Distributors – meet the true middlemen that play the main goal in this sales channel. The percentage of sales goes to distributors according to their agreement with the parent company. This model is quite profitable for both parties.
- Independent retailers – these parties have no direct relationships agreed with the parent company. Independent retailers order some goods and distribute them according to their own terms and conditions.
- Dealers – these middlemen distribute some specific product line or goods of a single category. Dealers can offer exceptionally affordable prices close to the costs of the parent company. But their marketing promos allow them to get rewards from high volumes of sales.
- Agents – these are individuals who act according to the agreement with the parent company but are waiting for the confirmed percentage for their activities. They can help your business to sell only some goods or all the available product lines as well.
- Consulting agents – these are consultants who act according to the interest of the parent company. Their task is to deliver recommendations and helpful insights to your target audience which will be easily converted into regular customers.
As you can see, there are seven different models to build up your sales channels. Some flagship companies opt for all these approaches at once to improve their outreach background and increase their selling potential.
How to Develop a Win-Win Sales Channel Strategy?
The best-matching business model begins with three essential steps to perform. The zero stage is analytics and research. Then, go to the triangle of successful sales channel development:
- Focus on the increased sales reach. Launch several sales channels and audit their traffic. See which one expands the customer base. Make an accent of them and add new sales channels to the list of activated business models. Work on them to distribute through newly-launched channels profitably.
- Build ideal partnerships to increase your distribution potential. Work on your networks to resell or order your goods for resellers profitably. Do not forget about your inventory management at this stage. Attract independent retailers, agents, and consultants to increase the number of sales channels and your profit margins.
- Optimization and combinations of approaches. Remember that you can mix various strategies and pick sides with the most successful approaches for your business. At this stage, you need to undertake optimization processes of your existing sales channels and audit them regularly. Revise your price lists and product lines to expand your global outreach and hit new markets with more potential customers.
With these tips on building up an efficient strategy for sales channels, you can reach your business goals faster in retail and other projects related to international trading and sourcing activities. Make your export and import really profitable through hassle-free workflows and zero risks in the pipelines and cycles & processes undertaken routinely.
