Why Manufacturers Need To Get Started With eCommerce

According to Deloitte, failure to embrace digital trends could put up to 35% of industrial companies out of business in the next 10 years. In the same article, they identify digitization as one of the major disruptors in manufacturing.

Source: Deloitte

In order to stay competitive, manufacturers must embrace innovation in their sales and marketing strategies as warmly as they welcome it in the manufacturing process. Implementing eCommerce for manufacturers is a large part of that next step in digital innovation. 

Prevalence of eCommerce

It’s clear that eCommerce isn’t some fad. According to Forrester, US B2B eCommerce will reach $1.8 trillion by the close of 2023. Will that number include your sales?

Online selling is how business gets done in 2020 and beyond. Amazon has trained an entire generation of people to research and buy the products and services they need online. The average age of a purchasing manager is 45 years old, and their ranks are projected to decline by 7% by 2029 as the purchasing function becomes less centralized. 

Today’s buyer wants a frictionless customer experience, and they want it to occur online. They prefer a mostly self-serve model with channels such as chat or phone support available when they need it. The ability to self-serve is the essence of the eCommerce customer experience.

And if the customer is king, the customer experience defines the mood in the kingdom.  Customer experience now surpasses price as a key differentiator. And just as important, 86% of buyers are now willing to pay more for a better experience. And that experience is online. 

Source: BlueBusiness

Particularly important for manufacturers to note, 61% of all transactions now begin online, and customers are already more than halfway through the buying process before they reach out to you. 

And these numbers were pre-COVID-19. The novel coronavirus and SARS-CoV-2, accelerated the shift to online buying. For manufacturers that want to survive, eCommerce is more than just another sales channel, it’s the future of commerce. 

Death Of The Trade Show

In the early days of the pandemic, the Global Association of the Exhibition Industry estimated that cancelling 500 trade shows resulted in about $26 billion in cancelled orders. In the US, there were about 9,400 B2B trade shows that added $101 billion to the GDP in 2019. Trade shows were essential to B2B sales. 

Of course, by now, well over 500 trade shows have been cancelled in 2020, and trade shows are no longer an essential channel.

Virtual trade shows tried to take their place. But just as a Zoom Sunday dinner with the family doesn’t have the same impact as an in-person meal, these virtual trade shows fell flat. Problems ranged from lack of audience retention to lack of engagement and the inability to measure their impact.

An August 2020 survey of exhibitors at virtual trade exhibitions shows that a full 45% don’t plan on participating again. That’s because education and thought leadership were the only areas that met expectations. All other areas underperformed.

Source: MeetingsNet

Now maybe this is a function of setting expectations too high, but more realistically, it’s the failure of the virtual trade to replicate the in-person experience. 

The trade show may come back in 2 or 3 years, but can your company wait that long?

Manufacturers Are Natural Innovators

The reluctance of manufacturers to embrace eCommerce seems at odds with manufacturers’ love of innovation. New technology shows up on the factory floor before almost any other place.

So, why is it that an industry that adopts the Internet of Things to reduce machinery downtime doesn’t see the Internet of eCommerce as the next step in the evolution of sales? 

One factor is the reluctance to let go of what has been a highly personalized selling process that focused on person-to-person interactions. One survey of B2B manufacturers in Europe found that most sales were still being made via sales reps and email.

Manufacturers should understand that eCommerce doesn’t de-personalize the buying experience; it makes it more personal. Visitors are able to explore the manufacturing website to compare product specifications. When they are ready to purchase or have questions, they can then reach out on their terms. 

Many manufacturers were reluctant to embrace digital marketing but due to the number of sales through emails and call centers, that hurdle has been overcome. 

When you see eCommerce as an extension of your digital marketing and personal approach to selling, you’ll see it’s a tool to be employed and not a technology to be feared. 

Benefits Of eCommerce To Manufacturers

Manufacturers benefit in many areas when they digitize the sales process with eCommerce.

You improve your customer experience when you use eCommerce to digitize or automate the RFQ process. Not only do buyers get a faster response, but you are also guaranteed that each quote and contract is priced properly. Customers also like the convenience of ordering online 24/7 as well as checking order status and history. 

If you sell through distributors and wholesalers, you can add support to these channels with B2B2B or B2B2C eCommerce. Personalized catalogs and price lists make it possible. You’ll also capture data to drive better business decisions. 

And when you implement a flexible eCommerce platform, you’ll be able to extend from B2B to D2C and support multiple storefronts with one backend.

Examples Of Successful Manufacturing Websites

Don’t think manufacturing can do eCommerce successfully? Well, here are a couple of companies that have made it work.

Wastequip is a leading manufacturer of waste management equipment. Through their website, they provide images, product specifications, use cases, and brochures. When you are ready to buy, you can simply click to request your quote. Existing customers find replacement parts just a click away as well. 

France Air Groupe designs and sells industrial air handling solutions worldwide. Through their website, buyers explore components of different industries and can get assistance in putting together the equipment that meets their needs. A product researcher would find everything they need to determine if the manufacturer was a viable candidate before they make contact.