Indirect Sales

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DEFINITION

The sale of a good or service by a third-party, such as a partner or affiliate, rather than a company's personnel. Indirect sales may be used in conjunction with a company's direct sales efforts or may be used in lieu of hiring. Indirect sales are often made through resellers, such as specialty stores and big box retailers.

INVESTOPEDIA EXPLAINS

Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel. In some cases, however, indirect sales may lead to reduced control of the brand message and poorer customer service because the company cannot manage indirect sales teams easily. Companies often resort to indirect sales when the demand for the product is outpacing the ability of the company to hire competent sales people, or when the price of the product is too low to justify a large sales force.


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