Channel conflict
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is channel conflict?
Channel conflict is the friction that arises when a manufacturer or distributor sells through several routes that end up competing for the same buyers. Typical cases are a manufacturer selling directly to its distributors’ customers, or a distributor’s website undercutting its own reps.
Channel conflict example
When a manufacturer starts selling online below what its distributors charge contractors, several of those distributors start promoting a competing brand.
Related terms
- OmnichannelOmnichannel is an approach to selling in which customers can buy through any channel and see the same prices, product information and account history.
- Online marketplaceAn online marketplace is a website where many sellers list products and buyers can compare and buy from any of them in one place.
- Two-step distributionTwo-step distribution is a supply chain in which a distributor buys from manufacturers and sells to dealers, which then sell to the end users.
- Manufacturer’s representativeA manufacturer’s representative is an independent salesperson or agency that sells a manufacturer’s products on commission, without buying or stocking any.
