E-commerce for Manufacturers and Distributors

Ecommerce has been a boon to retailers, enabling them to enter new geographical markets, attract customers who prefer to buy online or at off hours, and compete successfully with much larger retail chains. Now manufacturers are finding they can reap the same benefits by selling online, not only to their distributors and business partners, but even directly to consumers.

But selling online requires planning. Manufacturers and wholesalers must consider how ecommerce will affect their retail partners, most of whom probably also sell online, and create a cooperative strategy that benefits both the manufacturer and retail partners. Below are some guidelines for manufacturers and distributors moving or engaging in B2B ecommerce:

1.Create an omnichannel customer experience. Both B2C and B2B shoppers want to access the same products and features, payment options, and customer services regardless of the channel they are using.

2.Integrate systems. For ecommerce to work, data must be able to flow between the ecommerce, CRM, inventory, shipping and financial systems. Customers need accurate, real-time information on things like product availability, sales prices, and shipping status.

3.Prevent potential channel conflict. Manufacturers often fear they’ll alienate their channel partners by undertaking B2C ecommerce. However, there are ways to prevent that. Creating joint marketing and sales promotions, tying partner trade funds to the manufacturer’s or wholesaler’s overall sales, and not selling under retail prices will help to avoid channel conflict as well as boost overall sales.

4.Leverage sales data. Analysis of sales data can not only give the manufacturer or distributor better understanding of sales trends and buyer preferences, but can also be helpful in showing channel partners how your ecommerce effort is affecting them. In many cases, the data will show improved sales for everyone.

5.Map out a multi-year plan. Research your sales and support channels and develop a three- to five-year roadmap for incorporating ecommerce into your other channels. Identify potential pilot programs to roll out to test the ecommerce waters.

To learn more, visit the NetSuite Blog to access a recent webinar on e-commerce for distributors and manufacturers and learn more about their products for large and mid-sized businesses.

The 2013 Brown Smith Wallace Distribution and Manufacturing Software Guides are currently available for download. The 2014 edition will be available in April, 2014. Please contact snelson@bswllc.com for more information.

2013 Distribution Software

2013 Manufacturing Software

You can also request these guides, as well as all other materials, via our website: http://www.software4distributors.com/vendor/resources_index.aspx

 

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