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- Channel_stuffing abstract "Channel stuffing is a business practice in which 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. 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 a company in the long term.Channel stuffing has a number of long-term consequences for a 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, and private class-action suits have been engaged. Channel stuffing might also be part of a broader set of financial improprieties.".
- Channel_stuffing wikiPageID "2031489".
- Channel_stuffing wikiPageLength "4299".
- Channel_stuffing wikiPageOutDegree "7".
- Channel_stuffing wikiPageRevisionID "661593007".
- Channel_stuffing wikiPageWikiLink Category:Ethically_disputed_business_practices.
- Channel_stuffing wikiPageWikiLink Category:Marketing_techniques.
- Channel_stuffing wikiPageWikiLink Class_action.
- Channel_stuffing wikiPageWikiLink Distribution_(business).
- Channel_stuffing wikiPageWikiLink Grey_market.
- Channel_stuffing wikiPageWikiLink Over-selling.
- Channel_stuffing wikiPageWikiLink U.S._Securities_and_Exchange_Commission.
- Channel_stuffing wikiPageWikiLinkText "Channel stuffing".
- Channel_stuffing wikiPageWikiLinkText "channel stuffing".
- Channel_stuffing wikiPageUsesTemplate Template:Econ-stub.
- Channel_stuffing wikiPageUsesTemplate Template:Ref-improve.
- Channel_stuffing wikiPageUsesTemplate Template:Reflist.
- Channel_stuffing subject Category:Ethically_disputed_business_practices.
- Channel_stuffing subject Category:Marketing_techniques.
- Channel_stuffing hypernym Practice.
- Channel_stuffing type Company.
- Channel_stuffing type Technique.
- Channel_stuffing comment "Channel stuffing is a business practice in which 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. 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 Q5072512.
- Channel_stuffing sameAs m.06gfkp.
- Channel_stuffing sameAs Q5072512.
- Channel_stuffing wasDerivedFrom Channel_stuffing?oldid=661593007.
- Channel_stuffing isPrimaryTopicOf Channel_stuffing.