Channel Stuffing is where sales teams sell abnormally large quantities of product to distributors at one time. This can be fraudulent where businesses or staff engage in Channel Stuffing for personal gain or to mislead investors. Aside from fraud losses, Channel Stuffing can result in financial and inventory distortions, excessive returns, and wasted marketing budget. Data analytics is key in Channel Management, including for the early detection of Channel Stuffing – but this requires understanding how fraud schemes materialise in as typologies. This article provides an overview of this sales and distribution fraud scheme and tips to business on how to manage this. Continue reading →