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- Channel_stuffing abstract "Channel stuffing is the business practice where a company, or a sales force within a company, inflates its sales figures by forcing more products through a distribution channel than the channel is capable of selling to the world at large. Also known as "trade loading", this can be the result of a company attempting to inflate its sales figures. Alternatively, it can be a consequence of a poorly managed sales force attempting to meet short term objectives and quotas in a way that is detrimental to the company in the long term.Channel stuffing has a number of long-term consequences for the company. Firstly, distributors will often return any unsold goods to the company, incurring a carrying cost and also developing a backlog of product inventory. Wildly fluctuating demand, combined with this excess inventory, leads to costly overtimes and factory shutdowns. Even mild channel stuffing can spiral out of control as sales works to make up for prior over-selling. Discounts used to drive trade loading can greatly affect profits, and even help establish gray market channels as salesmen no longer adequately qualify their prospects. Occasionally, distribution channels such as large retailers have been known to identify the practice of channel stuffing in their suppliers, and use the phenomenon to their advantage. This is done by holding back on orders until the end of the suppliers' quota period. The supplier's sales force then panics, and sells a large amount of the product under more favorable terms than they would under ordinary circumstances. At the beginning of the next period, no new orders are placed, and, barring any action, the cycle is then repeated. This has an impact on customers, with gluts and shortages as buyers turn to competing products. Corporations have been known to engage in channel stuffing and hide such activities from their investors. In the United States, the U.S. Securities and Exchange Commission has in some cases litigated against such corporations.".
- Channel_stuffing wikiPageID "2031489".
- Channel_stuffing wikiPageRevisionID "571502078".
- Channel_stuffing hasPhotoCollection Channel_stuffing.
- Channel_stuffing subject Category:Ethically_disputed_business_practices.
- Channel_stuffing subject Category:Marketing_techniques.
- Channel_stuffing type Ability105616246.
- Channel_stuffing type Abstraction100002137.
- Channel_stuffing type Act100030358.
- Channel_stuffing type Activity100407535.
- Channel_stuffing type Cognition100023271.
- Channel_stuffing type EthicallyDisputedBusinessPractices.
- Channel_stuffing type Event100029378.
- Channel_stuffing type Know-how105616786.
- Channel_stuffing type MarketingTechniques.
- Channel_stuffing type Method105660268.
- Channel_stuffing type Practice100410247.
- Channel_stuffing type PsychologicalFeature100023100.
- Channel_stuffing type Technique105665146.
- Channel_stuffing type YagoPermanentlyLocatedEntity.
- Channel_stuffing comment "Channel stuffing is the business practice where a company, or a sales force within a company, inflates its sales figures by forcing more products through a distribution channel than the channel is capable of selling to the world at large. Also known as "trade loading", this can be the result of a company attempting to inflate its sales figures.".
- Channel_stuffing label "Channel stuffing".
- Channel_stuffing sameAs m.06gfkp.
- Channel_stuffing sameAs Q5072512.
- Channel_stuffing sameAs Q5072512.
- Channel_stuffing sameAs Channel_stuffing.
- Channel_stuffing wasDerivedFrom Channel_stuffing?oldid=571502078.
- Channel_stuffing isPrimaryTopicOf Channel_stuffing.