What is a Partner Distribution Channel?
A partner distribution channel is a network of people and companies that work together to market, sell, and deliver products or services. They can be an important part of a small business's growth strategy because they can help to grow sales, reduce per-unit costs, and improve the overall customer experience.
For example, if you are a small skincare company that specializes in organic products, partnering with a wellness blogger will expose your brand to their loyal readership and open up new avenues of exposure. Another great way to leverage channel partners is to offer cross-sell or up-sell products and services. For example, if you sell an email marketing software solution, you could partner with an email automation service or CRM to provide a complete solution for your customers.
When to Choose a Partner Distribution Channel
For smaller ecommerce businesses, it may not make sense to outsource fulfillment and delivery yet. However, as a business grows, it often starts to encounter situations that require outside expertise that a distribution partner is well-equipped to handle. These critical junctures are often telling signs that it's time to consider a partner distribution channel.
A channel partner can also help to speed up the time-to-market for a new product or service. This is because they already have existing relationships with customers that can be tapped into, which eliminates the need for you to spend time and money cultivating new customer relationships. This is especially helpful for small business owners that are trying to scale quickly.