Channel conflict occurs when different sales or distribution channels compete with each other to claim revenue. This can arise between direct sales teams, resellers, distributors or revenue-driving channels.

Common causes of channel conflict can include pricing discrepancies, territory disputes or misaligned incentives. Channel conflict has many negative potential side effects: it can erode customer relationships, damage brand reputation and reduce profitability.

Effective channel management strategies are essential to mitigate these risks and foster collaboration among partners.