What is a Channel?
Sales channel means employed to distribute goods or services from producers to consumers. Before a consumer buys any product, it must be passed through a
chain of organizations called “channel”.
A sales channel in finance and economics can either mean:
- The system of intermediaries between the producers, suppliers, consumers,
etc for the movement of a good or service.
- The trading range between support and resistance levels that a stock
price has oscillated in for a specific period of time.
The channels vary considerably in complexity depending on the product.
Producers selling their products directly to a consumer (like a farmer
selling their goods at a farmers market) are the most basic type of
Other channels are much more complex, with products sometimes passing
from producers to brokers to wholesalers or retailers before finally
reaching the consumer. Each step of the distribution channel increases
the cost of getting the product to the consumer.
Not all channels move directly toward consumers: business-to-business
marketing channels involve transactions between two companies.
For example, a technology company may manufacture an internal item,
such as a computer chip, and sell that product to other manufacturers
that use it to assemble hardware components.
A product is usually made by a brand at a factory. The brand then sells
this product to a national distributor which sells it to a state-level distributor which sells it to a retailer that sells it to a customer.
This is an example
of a Retail Channel.
Tophawks provides sales channel setup services through outsourced