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Channel Economics
The financial analysis of different sales channels to understand their profitability, cost structures, and contribution to overall business goals.
Implications
The financial considerations of operating different sales or distribution channels, including costs, margins, pricing strategies, and profitability, critical for optimizing channel performance and ensuring sustainable growth.
Example
Example: A retailer analyzes the channel economics of its e-commerce and physical store operations to determine the most profitable sales mix and adjust its investment accordingly.
Related Terms
Different from general business economics, channel economics focuses specifically on the financial aspects of managing and optimizing sales and distribution channels.
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