Channel conflict is not a relationship problem — it's a structural one. Direct-to-Dealer resolves it architecturally, not through compromise.
Channel conflict arises when a manufacturer starts selling directly to end customers — entering direct competition with their own dealers. The consequences are measurable: dealers reduce their brand recommendations, prioritise competitor products, or end the partnership entirely.
In markets with strong specialist retail — power tools, household appliances, medical devices, industrial equipment — this can put the majority of revenue at risk.
Certain products only online, others only in retail. Complex to manage, creates confusion for end customers.
Same prices online and in retail. Doesn't resolve the perceived conflict — the dealer still sees you as a competitor.
Commission for online sales in the catchment area. Administratively complex, hard to scale, leads to disputes.
With Dealer Checkout, the manufacturer sells on their own website — but the dealer is Seller of Record. They receive the order, they fulfill it, they profit from every purchase. No dealer loses revenue. Every dealer gains new customers. Channel conflict doesn't exist structurally.
Customer data, attribution, conversion on own domain
Pre-paid orders without acquisition effort
Structurally no channel conflict — the model excludes it