Indirect Sales

Indirect sales occur when a company doesn’t do the selling of their own product or service, but has a third-party do it instead.

For instance, a ton of companies sell their products to retailers and hypermarkets, who sell the products to the consumers for them. Some companies also develop affiliate relationships, where people with developed audiences leverage their position to sell someone else’s products.

Indirect sales are the norm for products with low prices and large volume. For companies with a high enough product margin, it makes more sense to try to sell directly to customers, since indirect sales can cut into profits and dilute brand messaging and customer service.