Consider the costs of agents if they are involved in this sales channel

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To evaluate the financial efficiency of a channel, use the profitability formula. This is the ratio of net profit to revenue, which shows how profitable the channel is.

Profitability formula:


For a more accurate assessment of the effectiveness of the sales channel, study the 8 key indicators:

Sales Volumes: Analyze the total sales volumes through the channel over the past 3-6 months.
Sales Trends: Explore how sales have changed over the past few months.
Return Rate: A high return rate may indicate quality issues or failure to meet customer expectations.
ROI - Return on Investment: Compare the revenue from the channel with the costs of supporting it.
Inventory to Sales Ratio: Evaluate how sales volumes compare to the amount of inventory in stock.
Delivery time: The time it takes for a product to reach brazil phone number list the customer is also important, especially if fast delivery is one of your competitive advantages.
Intermediary commissions:
Customer Reviews: Analyzing reviews will help you understand how satisfied customers are with their purchases through a given channel and what issues they have.
The effectiveness of the sales channel should be analyzed one month after its launch, and then periodically. To get the most accurate picture, conduct an analysis after three months of channel operation.
How to Manage Sales Channels
Effective sales management takes effort, but it is essential to keeping your business profitable.

We have compiled a selection of tips on how to manage sales channels:

Set specific goals
You need to set goals for each channel separately, including sales volumes, cost of acquiring new customers, and conversion rates. Clear goals will help you measure results and make informed management decisions.