Unlocking growth for manufacturers with marketplaces
How should manufacturers approach selling online? Explore how B2Bs can navigate dealer conflict and benefit from digital sales through a marketplace approach.
For manufacturers today, it’s important to leverage the growing preference of consumers to purchase online. By digitalising sales and governing reseller networks, manufacturers can reflect on purchasing patterns to predict and plan future production requirements - and ultimately thrive. In this article, we explore how B2B businesses can seize the benefits of digital sales through a marketplace approach.
Traditional B2Bs are on the cusp of huge success - and failure
Digital commerce for B2Bs is growing, with projections exceeding 18.97 trillion USD by 2028. Despite this promising outlook, many find themselves on the fringe of the digital revolution. What’s holding them back? Insufficient digital infrastructure, inefficient sales processes, budget constraints, and challenges with organisational inertia. New competitors are leaping ahead with new digital sales channels that appeal to the next generation of B2B buyers, who prefer to order and pay online.
In this digital shift lies the immense potential for traditional B2B companies. The inherent strengths of established B2Bs, such as deep customer relationships and nuanced industry expertise—qualities that purely digital entities cannot easily replicate—give these companies an advantage in the digital transformation journey. Embracing digitalisation through range extension and marketplace strategies can help traditional B2B companies secure their position in a rapidly changing landscape.
How should manufacturers approach selling online?
Manufacturers are often far removed from the end customer, driving most sales through retailers, wholesalers, and distributors. As digital transformation accelerates, many manufacturers are turning to ecommerce.
There’s a lot to gain from selling online. Direct access to consumer data, upselling/ cross-selling spare parts and services, and acquiring new customers thanks to a stronger online presence. There’s also risk. How can manufacturers sell online without upsetting dealer networks and third-party resellers? How can they navigate the complexities of selling and fulfilment?
Manufacturers face a strategic decision. How should they approach online sales? They can either establish a first-party ecommerce site to sell directly, risking the alienation of their channel partners, or they can create a marketplace to strengthen their ecosystem.
The benefits of a B2B marketplace strategy
Marketplaces today operate in two main models. The first is the pure marketplace, which serves solely as a platform for third-party suppliers to connect with buyers. The second model is the mixed marketplace, which not only allows third-party suppliers to list their products but also features items from the marketplace operator’s own product range. Many well-established B2B companies have recognised the benefits of the mixed marketplace model and integrated marketplace features into their own websites. This strategy has paid off, enhancing customer satisfaction by making it easier and quicker for customers to find and purchase products.
Sell online anywhere
Manufacturers can boost revenue and loyalty by allowing customers to buy online. With an ecommerce website and marketplace model, manufacturers can upsell or cross-sell related products, spare parts and services - and use search engines to capture new B2B buyers who prefer to research online.
Improve the reseller experience
Manufacturers can avoid dealer conflict with a marketplace model by easily routing orders to authorised partners and support distributors by managing customer service queries without leaving their existing system.
Smoother operations
Streamline orders, monitor partner fulfilment services and improve financial accuracy. With an ecommerce website and marketplace model, manufacturers can get insights into customers’ purchasing habits to predict and plan for future production. It’s also possible to automate manual processes like inventory and materials management.
It’s time to invest in digital commerce
Investing in digital commerce can be a winning strategy for established B2Bs looking to grow. Businesses selling directly to the consumer benefit from stronger customer relationships and access to behavioural data, which builds brand loyalty and improves innovation over time. By prioritising tools and strategies that unify the customer experience across platforms, wholesalers and manufacturers can unlock more opportunities to sell online. It’s not about cutting out the middleman; it’s about tapping into the opportunity and supporting sales and the dealer/distributor network in an omnichannel way.
Curious about our approach?
Composable commerce solutions are making it possible to boost bottom-line revenue with less upfront investment. Thanks to an incremental approach to digital development, companies can take smaller steps towards modernising their tech stack, replacing or upgrading tools as needed to better cope with increased volumes or changes in the market. Every business has its own needs and priorities.