If it ain't broke, don't fix it. Implementing an eCommerce solution for manufacturing is often seen as a radical and therefore unnecessary change. Personal meetings, trade shows, and building long-term relationships through offline traditional sales channels already work! Fair enough.
But here’s a thought: today, 73% of purchasing decisions in B2B companies are made by millennials. This is a generation that still remembers rotary dial home phones but no longer likes direct conversational contact. And very soon, Gen Z will come into play — a generation for whom phone calls are considered bad form and only acceptable in emergencies.
Customer behavior has changed, along with the market, approaches to marketing and sales, and the manufacturing industry as a whole. We live in a world of digital transformations.
Essentially, you have two options: follow this trend or step aside and give way to those who are ready to adapt and take action. Together with our partner, Elogic Commerce we’ve decided to delve into How to Effectively Use eCommerce for Manufacturers: strategies, potential challenges, and ways to overcome them.
3 main misconceptions that hinder digital transformations
The implementation of manufacturing eCommerce comes with a number of challenges, biases, and myths that can hinder the transition to online sales. Let’s take a look at the most common ones.
Digital sales are only possible for mass-produced products.
"Our machines and automated lines are always customized to meet the client's needs. No one is going to buy them as a 'ready-made solution.'" © Industrial Equipment Manufacturer
A common misconception. This is how most manufacturing companies think. But, as rightly pointed out, the foundation of any sale is a NEED. Customers don't need to be experts in your solution. It's enough that they can describe the problem they want to solve. For example, we can offer them the ability to customize equipment to their needs by selecting parameters in real time, such as:
- Type of material to be processed
- Desired equipment performance
- Necessary functions and modules
- Dimensions, power, and other key characteristics.
A detailed analysis revealed that 80% of orders for this particular client are placed using 10 different combinations. It’s likely that similar patterns exist in your case as well. All you need to do is identify them and standardize them slightly.
Accordingly, there’s no need to overload the product configurator with all available options. The customer expresses a need, and you, in turn, adjust the technical details and their compatibility to match that need. In more unique and complex cases, the sales department steps in. However, it’s already relieved of 80% of the “standard” orders.
Moreover, 70% of B2B buyers prefer digital self-service or remote interactions with sellers over traditional face-to-face meetings.
Customers won’t be able to understand the specifics and choose the right option on their own.
«I'm not sure that, without the help of an expert on our side, customers will be able to find the optimal solution for themselves. Our products are specialized and require careful adaptation to a specific building or facility.» © HVAC systems manufacturer (heating, ventilation, and air conditioning).
A completely valid point. However, we often have the following conversation with the sales departments (SD) of our clients:
SD: This can't be automated. The customer will have to spend a lot of time understanding the specifics. And there’s no guarantee they will make the right choice and ultimately be satisfied with their purchase.
Us: What methods do your sales experts use to find the optimal solution for each specific case?
SD: Well, first, we determine the efficiency requirements. In situation A, we suggest considering option X. In situation B, option Y would be a better fit.
What do we see from this dialogue? A clear rule/pattern. In other words, there is a foundation for initial guidance that can easily be reflected in a self-service tool. After that, the work can begin to clarify the specific details.
This is challenging from the human factor perspective. It requires changing entire business models and approaches.
“We are used to trusting our distributors; digital transformation is their headache.”. © textile manufacturer
A valid point. However, it raises the question of who actually owns the customers in this case: the distributor or the brand that produces the product?
By handing all the information over to the intermediary, the manufacturer loses control of the situation. They are unable to timely grasp new customer needs and adapt their product accordingly. Essentially, they are voluntarily relinquishing a tool that helps sell and service their business more effectively.
Another aspect concerning the human factor is the employees’ readiness to work in a digital format. The process of implementing an eCommerce platform for manufacturers and training staff may seem daunting. Many are afraid. However, a successful transition is possible by meeting simple conditions:
- Quality training materials from partners who specialize in development;
- Gathering feedback to address weak points;
- An open culture where employees can share their successes and challenges related to the transition to online sales.
This way, you will shift the focus toward understanding customer needs and providing valuable content, allowing you to improve the quality of interactions and avoid traditional aggressive sales methods.
“Speaking of myths, our clients are often intimidated by the challenges of technical integration between existing ERP systems and e-commerce platforms. Many of them feel that their business is too complex for online sales, especially when it comes to products that require specialized delivery or customization. In reality, modern eCommerce platforms, such as Shopify or Magento, offer flexible solutions that can be tailored to any needs.” © Project Manager Elogic Commerce
Why eCommerce system is a top option
Are you ready to lose such a significant number of potential customers? Those who will turn to competitors if they don’t receive the shopping experience they need from your company.
According to a McKinsey study, companies that integrate eCommerce can increase their sales by at least 5-10% by expanding their sales channels and enhancing convenience for customers. At a minimum. In our experience, there have been cases where the implementation of B2B eCommerce for manufacturers increased net profit by up to 30%.
Do you need more arguments? We won't delve too deeply. The benefits of eCommerce for industrial products are obvious:
- The ability to enter new markets without the need for physical presence;
- Establishing more trusting relationships with customers, increasing their loyalty;
- Cost optimization through shortening the supply chain and automation, as well as simpler inventory management;
- Reduced likelihood of errors in order processing, invoicing, warehouse management, etc.;
- The possibility of direct interaction with end customers without intermediaries (improving the quality of marketing and advertising);
- The ability to test new products and business models with lower costs;
- Resources to quickly and easily adapt to changes in demand and market conditions;
- Reduced costs of maintaining the sales department;
- Strengthened market position.
Ultimately, this leads to increased competitiveness and the ability to secure more stable positions in the market, especially in light of rising consumer expectations regarding the convenience and transparency of transactions.
Advantages for customers compared to traditional sales:
- The ability to streamline purchases and submit requests at any time, which is especially important in international deals with time zone differences;
- Quick access to detailed information about products, customization options, and availability;
- Reduced time for decision-making and completing transactions.
In the end, we arrive at a classic win-win situation. Now, the final and most important question remains: How to effectively use eCommerce for B2C or B2B companies?
Key Strategies for Using eCommerce for Manufacturers
The first thing that comes to mind is direct sales, right? The D2C (Direct-to-Consumer) model is one of the best ways to increase margins.
Sell products directly to consumers through your own eCommerce website, promoting it in search engines using Search Engine Optimization (SEO). This shortens the supply chain and allows you to control the entire process—from production to sale.
Entering B2B platforms and marketplaces is the least expensive way to increase sales and expand your customer base.
Marketplaces such as Amazon, Alibaba, eBay, Walmart, etc., allow for manufacturing sales and enable you to list your products on established platforms with vast audiences. This is especially beneficial for small B2C manufacturers who want to quickly enter the market without the costs of developing their own website.
An omnichannel strategy involves integrating online and offline channels. It helps create a cohesive experience for the customer. For example, if a customer starts placing an order online but wants to complete it in a physical store or during a business meeting. Giants like Siemens and Bosch are implementing omnichannel strategies for the convenience of their B2B and B2C clients.
However, the hybrid model is most commonly used: combining the advantages of B2B and D2C for maximum efficiency.
Some Models of Digital Sales
Successful eCommerce does NOT mean that you have to change your entire business model today and abandon your traditional sales channels. Of course, in an ideal scenario, the implementation will evolve into the creation of a unified digital ecosystem that encompasses warehouse management, logistics, partner and customer relationship systems, and various other operational, financial, analytical, and other aspects.
But you can start small: implement a catalog or use price calculators. Let’s take a closer look at these tools.
Product Catalog
It can be implemented as a simple digital tool for product presentations or as a web application that can be accessed on any device. This is precisely the solution we created for APTIV, equipping it with an admin panel for adding new products and presentation materials.
What did this provide?
- Improved visual representation of complex products (components for the automotive industry in our client's case);
- The ability to quickly adapt content to meet the specific needs of each client (without the need to create a new presentation every time);
- Strengthened customer trust by demonstrating professionalism and a modern approach to business.
And, of course, the main result is an increase in the number of closed deals due to a more attractive, informative, and accessible offering.
Price Calculator
Price is one of those factors that can significantly influence purchasing decisions. An integrated calculator on the website allows customers to quickly and effortlessly determine whether your offering fits their budget.
For businesses, this is an excellent way to generate warm leads. The logic is simple: new customers need to input their details on the website to gain access. Existing accounts can access more attractive pricing options. Additionally, the price displayed in the calculator can be adjusted based on specified parameters such as order complexity, quantity, and other individual conditions.
The calculator functions as a direct sales channel. Even if you’re not collecting customer data, the information gathered from interactions will be sufficient to improve targeted offers and create powerful marketing campaigns that effectively reach the target audience.
Visual CPQ
A visual product configurator helps manufacturers effectively demonstrate how their equipment works, which is often difficult to convey using traditional methods. Utilizing 3D models and animations allows for a clear presentation of technical details and advantages.
Visual CPQ (Configure, Price, Quote) simplifies the customization and sale of complex products, which is especially important in the B2B segment, where a personalized approach to each client is often required. This solution will help your business become more efficient, improve customer interactions, and streamline internal processes.
Implementing these tools is an effective solution that delivers tangible results almost from day one. It’s an excellent step towards initiating a comprehensive digital transformation.
The final word
The transition to new functionality can be straightforward and even enjoyable if you choose the right eCommerce strategy, tools, and, of course, a capable digital product development team.
Throughout this journey, it's essential to remember the purpose behind these efforts: ensuring your company's competitiveness. You need to meet expectations, provide the best customer experience, optimize sales processes, and enter new markets. This is an investment in the future.
Key Insight: If change is inevitable, you must accept it. The sooner you begin the process of digital transformation, the stronger position you will be able to secure. Take advantage of all the benefits and opportunities that come with having your own eCommerce platform or implementing specific digital tools.
