Channel conflict

Channel conflict can occur when a business attempts to sell the same product or service to its customer base through conflicting distribution channels.

An example of channel conflict may be the traditional use of agents rather than a proposed channel of internet distribution. The existing channel – the agents – may feel threatened.

The conflict is not a legal or regulatory issue but possibly an in-house, morale buster. In serious cases it can affect the bottom line when traditional distribution channels feel threatened enough to take action against the new distribution means.