For indirect sales, the company requires, legally independent companies, commercial agents or brokers for the sale of its product.
Possibilities of indirect distribution
- Retailer to the end-user
- Wholesalers to retailers or manufacturing companies
- Online stores of other companies to end users, retailers or manufacturing companies
- Independent trading agent or broker
- Franchise partners
Retailers and wholesalers acquire ownership of the product with a view to selling it further. Traders can also act as commissioners: they take over the product for sale but can return the unsold product to the supplier after the expiry of a fixed period. Trade agents and brokers, on the other hand, do not acquire any property. They only sell the product to the customer on behalf of the manufacturer.
Indirect sales are the most cost-effective variant for the company. However, the more expensive markups of “waypoints” on the way from the manufacturer to the final customer, the product or reduce the profit of the individual undertaking concerned, if the market does not allow sufficient flexibility in pricing.