Direct vs indirect sales
Direct selling uses the company’s own channels, including its sales team or online channel. Indirect selling uses intermediaries such as distributors, resellers or other partners.
Direct vs indirect sales in round numbers
Hypothetical: a manufacturer chooses its own sales team to sell a US$50m machine. That is a channel choice, not a rule that expensive or complex products cannot be sold through distributors or partners.
Scroll horizontally to read all columns.
| Issue | Direct | Indirect |
|---|---|---|
| Sales channel | Own team or online channel | Intermediaries or partners |
| Economics | Company bears relevant selling and service costs | Partner compensation and cost-sharing affect margin |
| Customer relationship | Company manages its direct interactions | Access and responsibilities depend on arrangements |
Terms Related to Direct vs indirect sales
Pricing power · Customer acquisition cost · All of the glossary