direct sales vs retail sales

Published on

15 February 2017


Strong Habet Team

The Difference Between Direct Sales and Retail Sales

The shopping world is changing. Now more than ever, we find people wondering what direct sales are, and how making the switch could benefit their business.

Our experts are here to answer the most popular direct sales FAQs, including: ‘How do your customers benefit when they purchase products from you rather than going into a shop?’, ‘What makes direct sales such an increasingly popular way to purchase products?’, and more.

Why Direct Sales are Better Than Retail

With traditional retail sales, the customer will go, often driving these days, to a retail shop. They’ll enter and have a look around. If they’re lucky, they might get asked by a shop assistant if they need any help before deciding what they want to buy, going to a till, and making a payment for the purchase.

In many big shops now, shopping just doesn’t feel like a personal experience anymore. The introduction of self-service tills has added to this robotic feel.

direct sales vs retail sales

Direct selling is a completely different experience, and it is easy to see why people love to shop this way. It is either person to person or in a fun party environment, you normally get a chance to try the products, to have someone tell you about them and help you find the right products for you.

The Pros and Cons of Direct Sales

The downside for direct sales consumers can be having to wait for the product to arrive, but to be honest with the massive growth in online shopping people are used to not getting an item immediately. Delivery can still be quick anyway.

There is a big price advantage in direct sales too, or at least there should be if the company decides to pass it on to the seller and consumer. Direct sales companies do not have the high costs of retail outlet rents and rates, their distribution systems are more streamlined with fewer middlemen to add their markup and extra vat on along the way and they don’t have the massive advertising costs that many retail shops have to pay just to get someone to visit their store. These savings should mean that products sold by direct sales represent better value for money.

But it is not just about the financial savings, most direct salespeople are also users of the products themselves, they can tell potential customers about their own personal experiences with using the products and their own customers’ experiences too. With items like perfume, they are their own walking advertisement.

Direct sellers were previously at a disadvantage in terms of the speed at which they could let their customers know about special offers, having to visit or call them all. Social media and text messages have changed all that, and have become a wonderfully quick way to keep customers up to date with news about offers and new products.

This is very much the era of direct sales and that is fantastic news for both the direct sellers and their customers too.