The concept of channel payouts in retail and ecommerce transcends simple financial transactions. In fact, it has an empowering effect on the relationship between brands and their channel partners. To be successful in a competitive market, any firm needs to know how the efficiency of these payments affect collaboration and trust determining to ultimate success of the business.

Appropriate payout structures create open communication between brands and their channel partners. When partners are aware of the payout mechanism and criteria applied, it leads to trust and decreases possibilities of conflict.