Direct Online Sales

Manufacturers of branded durable goods that use the internet to sell direct to the consumer may benefit from increased strategic advantage and financial performance, outweighing the "channel conflict" or negative sales cannibalization. The manufacturer is then able to more effectively balance channel control, strengthen the brand and establish direct consumer relations. An added benefit, as shown by research, is improved retail service levels, resulting in overall increase of the added value in the channel. The understanding of manufacturer on-line sales engagement and opportunities has not been previously extensively researched. This paper outlines the key issues of online direct sales, the role of the single brand store and brings together the latest theoretical models. Based on the research and insight gained from consumers and professionals a decision framework is presented that can be used to understand and analyze the potential of Direct Sales and suggests the manufacturer level of online engagement.