How to choose the most suitable sales channel for my business?
Posted: Mon Jan 06, 2025 5:29 am
Choosing the right sales channel is a fundamental issue for any business, since what is chosen will later determine the path of our products in the market and the speed with which they are delivered to the final consumer.
When choosing a sales channel, several factors come into play: first, the type of product. If the product you sell is perishable, you will need to sell it much more quickly and will need direct distribution. Then, the type of market; the customer can be a direct consumer or a retailer. Finally, the intermediaries. Depending on the needs and demands of your company, you will have to select one type of intermediary or another.
Step by step process
Many companies outline the marketing campaigns to be executed before they plan their sales and distribution plan. This is a huge mistake. Marketing comes after choosing the sales channel or platform, because marketing helps to streamline and energize that distribution channel. Marketing for Prestashop or Shopify is not the same as marketing for a business that sells in a physical store.
Another thing we need to decide is denmark number data how to reinforce sales. If sales are made in a physical location, how many employees do we need? What training do they need? On the other hand, if sales are made online, what will be the shipping costs, and will incentives be applied to certain customers?
Competitor analysis
When evaluating which sales channel is most suitable for our business, it is always essential to analyse what methods our competitors are using. And more importantly, why are they using these methods? Analyse the sales strategies of the best-positioned businesses in your sector and assess whether there is any qualitative advantage in using the channels they use.
In that sense, if you find a channel that your competition has overlooked, don't be afraid to experiment with it, because you may be the one who gains that desired advantage.
Examine the costs and benefits
Once you have decided on the right sales channel and distribution method, creating all the support systems to serve those decisions is complex and expensive. Once the company has that sales infrastructure in place, it will be difficult to turn back, so it is worthwhile to first analyze the costs and benefits that a particular sales channel can bring.
It is also important to implement analysis tools to assess the results of these enabled channels. When business is going through a bad patch, we may discover, after a thorough analysis, that the loss of sales is the result of a sales channel that was not entirely suitable for our business.
When choosing a sales channel, several factors come into play: first, the type of product. If the product you sell is perishable, you will need to sell it much more quickly and will need direct distribution. Then, the type of market; the customer can be a direct consumer or a retailer. Finally, the intermediaries. Depending on the needs and demands of your company, you will have to select one type of intermediary or another.
Step by step process
Many companies outline the marketing campaigns to be executed before they plan their sales and distribution plan. This is a huge mistake. Marketing comes after choosing the sales channel or platform, because marketing helps to streamline and energize that distribution channel. Marketing for Prestashop or Shopify is not the same as marketing for a business that sells in a physical store.
Another thing we need to decide is denmark number data how to reinforce sales. If sales are made in a physical location, how many employees do we need? What training do they need? On the other hand, if sales are made online, what will be the shipping costs, and will incentives be applied to certain customers?
Competitor analysis
When evaluating which sales channel is most suitable for our business, it is always essential to analyse what methods our competitors are using. And more importantly, why are they using these methods? Analyse the sales strategies of the best-positioned businesses in your sector and assess whether there is any qualitative advantage in using the channels they use.
In that sense, if you find a channel that your competition has overlooked, don't be afraid to experiment with it, because you may be the one who gains that desired advantage.
Examine the costs and benefits
Once you have decided on the right sales channel and distribution method, creating all the support systems to serve those decisions is complex and expensive. Once the company has that sales infrastructure in place, it will be difficult to turn back, so it is worthwhile to first analyze the costs and benefits that a particular sales channel can bring.
It is also important to implement analysis tools to assess the results of these enabled channels. When business is going through a bad patch, we may discover, after a thorough analysis, that the loss of sales is the result of a sales channel that was not entirely suitable for our business.