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7 Strategic Benefits of E-commerce for the Manufacturing Industry

Bhagyashri Kambale | February 14, 2022 | 772 views
7 STRATEGIC BENEFITS OF E-COMMERCE FOR
B2B e-commerce for manufacturers is seeing resurgence in the manufacturing business. Today's manufacturers are moving away from old business models and heading towards digital ones.

“E-commerce isn’t the cherry on the cake, it’s the new cake”

- Jean Paul Ago CEO L’Oreal

The Manufacturing & E-commerce Benchmark Report says,
  • 98% of manufacturers have, or plan to have, an e-commerce strategy.
  • 42% of manufacturers who are engaged in e-commerce and digitalization said it has improved customer relationships.

The statistics above shed light on the manufacturing industry's development. We must acknowledge that our physical factory is transitioning into an e-commerce factory. B2B businesses are taking advantage of the convenience of browsing online product catalogs without having to go to the site.

Why Is E-commerce for Industrial Products Important?

Consumer behavior is driving transformation in the manufacturing space, particularly with the shift to digital channels. Manufacturers who still handle consumers solely by phone, fax, or email run the risk of losing their loyal consumer group. This is because, in recent years, their worlds and preferences have grown increasingly digital.

In the Manufacturing & E-commerce Benchmark Report, manufacturers claimed that internet sales accounted for over half of their total income. So, manufacturers have come a long way since their earlier days. According to Digital Commerce 360, 80% still relied on their internal sales force to boost revenue. But we all know that manufacturers can do more to meet B2B customer needs.

Today's B2B clients expect self-service options in addition to transactional websites. These buyers want reliable information from your web business, whether it is inventory levels, product specifications, order history, or their personal negotiated discounts. It should be available anytime and wherever customers desire.

“You can’t wait for customers to come to you. You have to figure out where they are, go there and bring them back to your store”

- Paul Graham, Y COMBINATOR

The key reasons for the demand for e-commerce for industrial products are
  • 75% of B2B goods are purchased online.
  • 1 in 3 buyers pick a vendor on the basis of its online ordering, payment, tracking, and return capabilities.

B2B Manufacturing E-commerce Benefits


Efficient Operations

A B2B e-commerce platform helps manufacturers across sectors to increase productivity, reduce costs, and simplify procedures. A web-based manufacturing e-commerce catalog significantly reduces the cost of printing product catalogs. It automates time-consuming operations such as catalog relevance maintenance, data cross-checking, and human data entry. It can connect with ERP, CRM, PIM, and other systems, thus streamlining a lot of back-end operations.

Order Accuracy

Manufacturers have to cope with enormous orders and diverse customers. Fortunately, many B2B e-commerce platforms allow for customized pricing lists and RFQ procedures. Personalized and smooth ordering is possible with configurable back-office operations. It eliminates mistakes and saves time by processing orders quickly.

Better Analytics

Online consumer data helps manufacturers grow their businesses. An e-commerce platform gathers data about purchases, sales, refunds, shipping, and more. This data helps to forecast trends and optimize inventory and delivery. This information can help product developers make their products better, sales reps find customers, and marketing teams find customers.

Unlock Revenue Sources

While some businesses were already in the process of shifting online, the pandemic has accelerated the digitization process and showed that shifting online is the only option to counteract declining physical revenues. An internet store brings new customers to traditional businesses. A solid SEO strategy and a mobile-friendly shop may help them establish a large client base and sell more to them.

Passive Earnings

A well-designed manufacturing e-commerce site will automate back-office tasks and allow users to self-serve their orders. Automation relieves salesmen and increases operational hours. As a result, manufacturers may sell 24/7 and personnel can explore other revenue-generating options.

Gain Brand Awareness

E-commerce is a great marketing tool for manufacturers. They can help with search engine visibility, especially as B2B customers increasingly use Google to study firms. This could help people who make and sell things, as well as distributors and retailers who work with them.

Expand to New Markets

Vertical, market, and geographic expansion become simple with the proper e-commerce solution. Flexible solutions let businesses grow into new areas and respond to opportunities faster. Aside from B2B sales, several manufacturers choose B2B2C sales or direct-to-consumer sales (D2C). As manufacturers diversify their companies, these tendencies gain traction.

Final Word

Manufacturing e-commerce is more than just online shopping and selling. It's not simply about interacting with clients on the Internet. “E-commerce is a business tool that may help your company profit from bigger digital transformation and business evolution projects. Having a successful and expansive manufacturing business requires the design of an interactive and customer-centric B2B e-commerce platform. So, if you haven't considered converting your physical goods factory to an e-commerce factory yet, now is the moment.

FAQ


Why is web server bandwidth vital for e-commerce sites?

Web server bandwidth is also significant because the more bandwidth available, the more simultaneous visitors your site can handle. Most ISPs and web hosts must supply adequate bandwidth to handle peak demand.

What policies must e-commerce sites have before going live?

A privacy policy, accessibility regulations, and financial reporting policies are just a few of the policies that an e-commerce company site must design before going live.

How is e-commerce useful for manufacturers?

E-commerce allows manufacturers to test new products without risking a large investment. Instead of opening physical storefronts or stocking inventory, you may start selling the new product online.

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