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Sales channels for your product

It may be easier to purchase, import or produce a product than to find the right sales channel for it.

A sales channel is the store, the wholesaler or the webshop that has contact with the customers. The most valuable thing a company can have is contact to the customers.

Without customers no business even if you have the world´s best product.

An example

In Brazil many interesting things are produced such as quality shoes made of soft plastic. You might have found a nice pair of ballet shoes and a pair of high-heeled shoes in bright colors that you want to import to Denmark.

Which sales channel you can use to get them sold? For example:

  • Make your own webshop - who dares to buy unfamiliar plastic shoes from a shop? It requires a great branding work before web sales is credible

  • Open a store in your town – you have to sell many pairs of shoes just to pay the rent

  • Sell shoes to a shoe chain - it´s almost only chains that sell shoes in Denmark today, and they will probably not give you 10% per sold pair of shoes. They are big enough to buy directly from Brazil.

  • Driving around to small independent shops - there are many, but they buy in small quantities. It is expensive and time consuming.

  • Sell on open markets - it is relatively cheap, but expect a relatively small sale

Build a sales channel

If you long term will build a brand for Brazilian shoes, you need to develop your own sales channel. It takes time, but you will get to own something valuable – the direct contact to customers.

What is your sales channel?

Before you purchase or produce a container full of a really exciting product, ask yourself: "How do I sell my product?"

Here is a model you can consider. The closer you are to the customer the better:

  1. Manufacturer >> Wholesale >> Wholesale >> Shop >> Customer
  2. Manufacturer >> Wholesaler >> Shop >> Customer
  3. Manufacturer >> Shop >> Customer
  4. Manufacturer >> Customer

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