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Manufacturing Ecommerce: Cutting Out the Middleman

Grow Your Own Way With Ecommerce

The debate over whether or not manufacturers should embrace ecommerce continues to be a topic people are on the fence about. With global supply chains and distribution channels thrown into chaos by COVID-19, many companies have struggled to get their products out to end-user customers. And even in crisis, they still need to improve profit margins and grow sales. For many manufacturers, ecommerce offers a solution.

What is Ecommerce?

In today’s society, no matter who you are selling to, ecommerce is a major method for purchasing and selling products. Ecommerce is the process of buying and selling products through the Internet and mobile applications (Ecommerce Platforms). Ecommerce includes both online retail and electronic transactions. According to a recent study, by 2020, it is estimated that global ecommerce sales will reach just over $4 trillion, confirming that ecommerce is a growing and extremely profitable industry to be part of (Statista).

Direct Marketing Makes It Possible

There’s no doubt that the Internet notably changed the retail world at the turn of the century, and it continues to do so in the modern era. The industry is continuously evolving, changing how we shop and conduct business as a whole. Manufacturers are progressively skipping the wholesaler’s role and instead selling straight to their consumers with ecommerce. This is possible because advancements in technology have greatly decreased the need for a middleman in marketing.

Thanks to modern web, mobile, email, and social technologies, marketing is easier than ever for all types of businesses. Instead of relying on the channel to generate demand and drive sales, manufacturers can utilize direct marketing tactics to easily reach their target audience themselves. Direct marketing is a promotional approach that includes a business displaying information about their products, service, or company to their target audience without relying on a middleman. Direct marketing has many benefits for businesses. It is efficient and fast, and it’s easy to track and assess the effectiveness of your activities.

The Benefits of Ecommerce

There are many benefits to manufacturers who use ecommerce to sell their products directly to end-user customers. With ecommerce, manufacturers can reach a bigger audience online, allowing for market share growth. It’s your market share, not your distributor’s. Ecommerce also allows companies to focus on the user without a buffer in between, creating a more personalized experience, and building trust and loyalty to the brand.

Here’s a perfect example:

In 2017, Nike started to focus on conducting business directly with consumers, and essentially cut out the middleman. Nike reported that their website sales grew 19 percent, while their retail stores only got a 5 percent increase for same-store sales (Bloomberg). The CEO of Nike, Mark Parker, explained that they wanted to make customers shopping experience more personal (Bloomberg).

Where to Start?

A good place to start with skipping the retail middleman is to build your own ecommerce website for your manufacturing business – or partner with an experienced ecommerce agency like Blayzer in St. Louis to build it for you. We have partnered with many manufacturers over the years with great success. We will start by consulting on your overall digital strategy and architect a custom ecommerce solution that properly integrates all your data and marketing strategies. If you’re ready to break free from the middleman and grow your own way, give Blayzer a call today!

Cut out the middleman, start your ecommerce site, and watch your sales grow.
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