What is a direct sales model?

The sales model is a strategy that the company uses to get its consumer products. The company using a direct sale model is sold directly to consumers instead of selling its product to dealers such as department stores and third -party websites. The main advantage of the direct sales model is that it often allows companies to keep product prices lower and offer faster and more personalized customer service.

It may be impossible to calculate different sales models used by businesses. Each business has a different strategy that changes on the basis of market variables, customer needs and changes in technology. However, sales models usually fit into one of the three categories: direct, seller only or mixed sales. Companies using mixed sales strategy do some of their sales directly, but also sell their product to third parties for further sales. Many products sold in Infomercials are sold using a mixed sales strategy, PROto be sold on television directly by the manufacturer, but they can also be bought in department stores, usually at higher prices.

The

direct sale model began to be used in the middle and at the end of the 18th century, when manufacturers realized that they could sell directly to customers through catalogs. Instead of selling their product to the store, which then increased the price and sold the product to consumers, manufacturers were able to fill in orders by mail. They do not have to worry about distributing your product to shops or production of huge quantities that could or may not sell. They managed to send customers directly and produce only enough products to fill in the orders that came.

A joint access to the Internet has created a brand new forum for the direct sales model. Manufacturers were not only able to sell directly to their clients, but also to communicate with them in real time, which made it possible to improve customer service. Internet alsoHe took one of the main obstacles facing companies using a direct sale model, which was visibility. In front of the Internet, companies using a direct sale model sometimes had difficulty in addressing consumers, because the company's products were not in chain stores and department stores where people shopped every day.

Despite the Internet, there are still disadvantages to the direct sales model. Companies using other sales models expect to share part of this burden with distributors. With direct sale, all the burden of marketing and distribution on the manufacturer.