The sales channel is simply the funnel through which the buyer found and purchased a given item. When a seller sets up an account with Amazon, he can choose to display the sellable items directly on the Amazon Marketplace or through a third-party, affiliate site. Either of these two options are the respective sales channel that the purchase will eventually go through in order to be completed as a final sale.
Using Sales Channel as a Search Function
After a sale has been initiated, the transaction is recorded on the Orders List. This is the area of the Seller Account that files all transactions to date for any given purchase. When the seller needs to find a specific sales transaction or wants to cull information from a large database of transactions, he can search this Orders List. One searchable term is the sales channel. By sorting the orders through this option, the seller can easily view how many of the purchases were made through Amazon and how many were filtered through other affiliate sites. See the Multi-Channel Fulfillment page for more information.