Many manufacturers and brands see ecommerce as a major growth opportunity. Online sales can help companies reach new customers, expand into new markets, and improve profitability. However, launching an ecommerce channel can create tension with distributors, dealers, retailers, and other sales partners. This issue is known as channel conflict. Channel conflict occurs when partners feel that a brand is competing directly with them. If not managed carefully, it can damage relationships and reduce trust. The good news is that businesses can launch ecommerce successfully while maintaining strong partnerships. The key is to build a strategy that supports both direct online sales and existing distribution networks. Understanding Why Channel Conflict Happens Before launching an ecommerce platform, companies need to understand why channel conflict occurs. Most partners invest time and resources into selling a brand’s products. They develop customer relationships, provide support, and promote p...
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