Occasionally, distribution channels such as large retailers have been known to identify the practice of channel stuffing in their suppliers, and use the phenomenon to their advantage. This is done by holding back on orders until the end of the suppliers' quota period. The suppliers sales force then panics, and sells a large amount of the product under more favorable terms than they would under ordinary circumstances. At the beginning of the next period, no new orders are placed and barring any action, the cycle then repeats.
Additional meaning of Channel stuffing:
Corporations have been known to engage in channel stuffing and hide such activities from their investors. In the United States, the Securities and Exchange Commission has in some cases litigated against such corporations.