Secondary Sales
Secondary sales refer to the sale of goods from distributors, wholesalers, or stockists to retailers or end customers. It is the next stage in the sales pipeline after primary sales, which occur when manufacturers sell products to distributors.
For example, in the FMCG industry, a company like Nestlé sells its products to distributors (primary sales). The distributors then sell these products to retailers like supermarkets or local shops, which is considered secondary sales.
2. Difference Between Primary and Secondary Sales
Aspect | Primary Sales | Secondary Sales |
Definition | Sale from manufacturer to distributor/wholesaler | Sale from distributor to retailer/end consumer |
Ownership Transfer | From manufacturer to distributor | From distributor to retailer |
Purpose | Stocking the supply chain | Meeting actual market demand |
Control | Manufacturer has control | Depends on market demand and retailer behavior |
3. Importance of Tracking Secondary Sales
✔ Demand Forecasting: Helps manufacturers understand market demand and plan production.
✔ Inventory Management: Avoids stock outs or overstocking at retail points.
✔ Distributor Performance Evaluation: Measures how effectively distributors are pushing products.
✔ Retailer Engagement: Helps in designing better trade promotions and incentives.
✔ Market Penetration Insights: Identifies slow-moving regions or products.