Explain the term channel conflict?
The brisk expansion of e-commerce has expedited the problem of channel conflict. Although e-commerce can be expensive except for the biggest brands, it is now possible and cost-effective to sell products online to any size business. However, e-commerce sites often compete with offline retailers, leading to channel conflicts.
Channel conflicts take place when numerous participants trade the same product in one market for different pricing. Naturally, this will create a situation where channel partners have to compete with each other or with the domestic sales team. This discrepancy is not based on price but may be due to lack of dealer training, poor communication from the company to dealer, or inefficient distribution of information and applications from older legacy sites and systems. Some of the channel conflicts are as follows:
- Horizontal channel conflict
- Vertical channel conflict
- Multiple channel conflict
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