Channel conflict is not a new concept. It has been frustrating managers in the business world for many years. It has always accompanied the development of new marketing channels, such as the introduction of factory outlet and discount stores in the 1980s. Only recently, with the emergence of the Internet as a new and dynamic distribution channel, has this topic been more of a focal point in boardroom discussions. A recent survey of 50 manufacturers revealed that 66 percent believed that channel conflict was the biggest issue they faced in their online sales strategy. Channel conflicts in the e-commerce age are intensified by the unique channel characteristics of the Internet.