Sales outsourcing represents the partial or complete outsourcing of sales activities to external partners.
Sales outsourcing essentially pursues two goals: Firstly, it aims to reduce selling expenses and, secondly, sales and distribution margins shall be improved sustainably.
Sales outsourcing can be useful to balance sales peaks, reactivate neglected sales channels or acquire new customers. Additionally, sales outsourcing can also be an option if market coverage needs to be increased or access to end customers is complicated.
Outsourcing in sales creates flexibility and can be especially useful in markets with seasonal or cyclical fluctuations. A major disadvantage of sales outsourcing is the possible dependence on external partners and the risk that misconduct of the sales partners may be associated with the manufacturer’s brand.