What is the Meaning of Channel Sales?

Peter Ganza, director of marketing at Magentrix, recently sat down with our resident channel coach, Paul Bird, to answer some of the most common questions individuals have been asking online. 

What is the meaning of channel sales?

Paul Bird: “The meaning of channel sales, the definition of channel sales. This is any time that the buyer or the user of a product is different than the manufacturer or the provider of a service or technology or product. So that channel sale allows people to go through, typically a third party, in order to acquire that product, service or technology. 

In every industry, this channel sale varies and is a little bit different. 

If you look at somebody that is trying to buy a house - for most people they are going through a real estate agent or a real estate broker to conduct and facilitate that sale. They’re not going directly to the seller of the house and making the exchange of funds to buy that property. 

The same thing would happen with retail. If you walk into a retail clothing store - that clothing store doesn’t manufacture the clothing in a lot of cases. They’re purchasing it through distributors or other agents and then bringing that product to market.

So that’s really the definition of what a channel sale is -  you have a third party that’s helping the end-user, the consumer, the business to buy a product or service and they’re also representing these companies that create products, provide services, or create technology so that an end-user can purchase that product, service or technology.”

Previously we covered What is Channel Sales. There were many variations of the questions around ‘channel sales’ as a topic. The two that had the highest volume on Google were what is channel sales and what is the meaning of channel sales. That being said we felt it was a good opportunity to educate the market and address both questions in separate posts & videos.

Do you have anything to add to this topic? Feel free to share and comment below. What does your definition of the meaning of channel sales look like?