Dealer Operations
How to Cut the Nerve of Distributor Cross-Region Selling?
Cross-region selling, also known as channel stuffing, occurs when distributors dump products below market price in other regions. As downstream players in the value chain, distributors have limited influence and bargaining power, so they operate within their own regions according to manufacturer strategies, earning minimal profits. Having seen many manufacturers' strategies fail, distributors, often from wholesale backgrounds, lack patience for long-term goals and are attracted to sales opportunities elsewhere, sometimes shipping goods from Guangzhou to Zhengzhou for a mere 200 yuan profit. This article explores the motivations behind cross-region selling, the conditions that foster it, and strategies to prevent it.
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