Manufacturers are Taking Advantage of E-Commerce Platforms

Manufacturers are Taking Advantage of E-Commerce Platforms

By Manufacturing Technology Insights | Tuesday, February 19, 2019

The marketplace is ever-evolving, and the manufacturers are implementing new technologies to keep pace with the shift. Manufacturers are leveraging the opportunity to open a web store and eliminate the reliance on third-party services to sell directly to the end customer. In a survey of 559 B2B organizations, 44 percent of manufacturers admitted that they are operating an e-commerce web store and sell directly to end customers.

E-Commerce can handle the complexity of both B2B and B2C buying process, and therefore it facilitates manufacturers with a new customer base. According to the survey, 24 percent of manufacturers open an e-commerce web store for an additional revenue stream with the intention of hassle-free single channel sales stream. The supply chain operating method is facing a revolution as the line between manufacturers and retailers is blurring.  

As manufacturers, wholesalers, and distributors are selling directly to the customers, it is cheapening the products and threatening the profitability and longevity of the business. 63 percent of distributors saw wholesalers as their competition in the market. Companies are under pressure from online competition, expanding customer bases, changing customer demand, and improving customer buying experience even in the B2B market. These multiple facets are forcing companies to adopt new technologies.  

Global organizations are using e-commerce to scale their business model and expand their business empires. Wholesalers feel threatened by manufacturers because they are selling directly to the customers disrupting the traditional supply chain. These market dynamics are giving birth to new competition. The disruptions of the supply chain will make it a volatile place to operate. 25 percent of the businesses failed to meet critical business growth objectives due to increased competition and competitive marketplaces

Majority of the organizations are planning to upgrade their e-commerce solution in the next two years while other companies are already emerging technologies like virtual reality to personalize the buying experience. On the other hand, a few companies are adopting fully automated ordering using the internet of things (IoT). The adoption of new tech means that the buying process will take place with little human interaction. The entire scenario of businesses interacting with wholesalers and distributors is changing and is causing a significant shift in the operations of the supply chain.

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