With the surge of eCommerce in the manufacturing space, it has become crucial for these businesses to adapt to a changing marketplace. This guide will provide a high-level overview of B2B eCommerce for manufacturers, what it entails, why it's important, and how to get started with it. Whether you're new to the digital commerce space or looking to enhance your existing strategies, we've got you covered.
How eCommerce Has Become Table Stakes for Manufacturers
Manufacturers, once primarily focused on production, are now realizing the immense potential of doing business on digital networks like the internet. There, they can easily interact with wholesalers, retailers, distributors, and various other partners. To embark on the B2B eCommerce journey, there's what we call a “crawl-walk-run” approach:
Crawl: Maintain Existing Processes
Start by integrating your existing management systems into the digital framework of your choosing — this means connecting your traditional business management tools and processes with the digital platform you're implementing for eCommerce. These tools include ERP and CRM systems, inventory management software, order management programs, and financial processes.
From there, make sure you maintain all existing data on your website — populate your site with product information, customer data, and order history to ensure continuity for your customers and partners. Even if you're not ready to sell online or receive quotes via your website forms, you can at least integrate your OMS and/or ERP systems with your website to provide your customers with personalized portals to access order history, payment status, and more. This information is purely informational, but much more efficient than your customers having to call or email your team. These portals could also offer cross-sell and upsell opportunities even if you are not selling online — they are gentle suggestions to your existing clients for how you can provide even better value to them.
Walk: Implement Online Features
Once you have your current process transferred to the new space (and the portals mentioned above in place, should you choose to do so), add features like requesting quotes online. These will make it easier for customers to interact with your products and provide a reason for them to adopt this new model.
Run: Complete Transactions Online
The ultimate goal is to enable complete transactions online, allowing customers to place orders with ease. The exact path through this process varies depending on the nature of your products and distribution channels — but seamless online transactions should be your end goal. This area is where some heavy lifting may be required by your development team as they build out product configuration tools to bi-directional API connections. This is your business' opportunity to implement unique features that set you apart from the competition while improving operational efficiency.
Today’s B2B Manufacturing Buyer
Today's B2B buyers have evolved. They expect the convenience of conducting business online, rather than relying solely on phone calls, emails, or even faxes (yes, faxes). To reach the B2B buyer in more places, consider leveraging affiliate marketing and marketplaces like Amazon, Walmart, and Macy's. Also, don't forget to explore international markets — eCommerce can facilitate global expansion. You will bolster your prospects by diversifying your channel reach and connecting with your buyers where they are and where they will be in the coming years.
Now more than ever, potential buyers are browsing through various marketplaces all over the world. Where is your business in this digital landscape? To meet buyer expectations, ensure you are present on platforms like Grainger, eBay, and others (as well as the marketplaces mentioned above). Many buyers need or want 24/7 access, accurate pricing, and comprehensive product information — so be sure your website has it all.
The Massive Upside of eCommerce for Manufacturers
The benefits of embracing B2B eCommerce are immense yet simple. According to a 2021 PwC survey, 66% of manufacturers say that implementing digital marketing and sales over the next two years is a “high” or “very high” priority — meaning that the shift has already begun.
B2B eCommerce opens doors to increased sales revenue, wider market reach, and an overall improved business and customer experience. It also allows manufacturers to reach customers and partners across the globe, providing growth opportunities that were likely once unimaginable.
Why B2B eCommerce Is Right for Manufacturers
There are three key points (in our opinion) that manufacturers benefit from the most when it comes to B2B eCommerce — operations, customer experience, and market expansion.
Streamlined Operations
B2B eCommerce provides the features and functionality that manufacturers need to streamline their operations, including order management, inventory control, and seamless communication with partners.
Enhanced Customer Experience
Manufacturers can provide a superior customer experience by offering self-service features, personalized product recommendations, and user-friendly interface, making it easier for clients to find and order products.
Increased Market Reach
By going digital, manufacturers can massively expand their market reach. They can connect with a broader range of partners, explore international opportunities, and access new channels for sales — and much more.
How To Get Started With B2B eCommerce as a Manufacturer
Transitioning into B2B eCommerce as a manufacturer can be a game-changer for your business — but it can also be complicated or daunting. To make this journey as smooth as possible, let's delve deeper into five crucial steps that will help you get started.
Step 1: Define Your Goals and Objectives
Your journey into B2B eCommerce should always begin with a clear sense of direction. Define your goals and objectives, and make sure they align with your overall business strategy. Here's how to do it:
- Set Specific Objectives: Are you looking to increase sales, cut down on operational costs, or enhance customer satisfaction? Be specific about what you want to achieve.
- Consider Your Target Audience: Who are your target customers, and what are their needs and preferences? Understanding your audience is essential for crafting a B2B eCommerce strategy that caters to their requirements.
- Establish a Timeline and Milestones: Having a timeline for achieving your goals and creating milestones along the way will help you track progress and adjust your strategy as needed.
- Plan Your Budget: Determine how much you are willing to invest in your B2B eCommerce venture. Your budget should accommodate not only the initial setup but also ongoing maintenance and marketing.
Reader Tip: It is important for B2B manufacturers to be judicious in their implementation of an eCommerce platform — unless you have unlimited budget to design and build the platform of your dreams, it is essential to analyze and prioritize requirements according to their relative ability to deliver return on investment.
Step 2: Choose the Right B2B eCommerce Platform
Selecting the right B2B eCommerce platform is one of the most critical decisions you'll make on your journey to the digital commerce space. Here are some key considerations:
- Scalability: Your chosen platform should be able to grow with your business. Ensure it can handle increased traffic, product listings, and users as your business expands.
- Customization: Consider the level of customization the platform allows. Your B2B business may have unique requirements that demand a high degree of flexibility in design and functionality.
- Security: Security is paramount in any business transaction. Look for platforms with robust security features, such as data encryption, secure payment processing, and protection against cyber threats.
- Integration: Ensure that the platform can seamlessly integrate with your existing systems, such as ERP (enterprise resource planning) and CRM (customer relationship management) software. This integration will streamline data flow and enhance efficiency.
Step 3: Build a User-Friendly Website
Your website is your digital storefront, and its user-friendliness can significantly impact your success. Here's how to create a website that resonates with your customers:
- Mobile Responsiveness: With the increasing use of mobile devices, your website must be responsive and adapt to different screen sizes. This ensures that customers have a pleasant experience whether they're browsing on a laptop or a smartphone.
- Intuitive Navigation: Design an intuitive navigation structure. Customers should easily find what they're looking for — whether it's products, pricing, or contact information.
- Clear Product Presentation: Present your products with high-quality images, detailed descriptions, and clear pricing. Consider providing multiple images from different angles and including technical specifications.
- Seamless Checkout Process: Make the checkout process as smooth as possible. Eliminate unnecessary steps, offer multiple payment options, and provide a clear order summary before finalizing the purchase.
Step 4: Populate Your Website with Products and Information
The heart of your B2B eCommerce website is your product catalog. Here's how to create one that’s both comprehensive and informative:
- Detailed Product Information: Each product listing should include detailed information, such as specifications, dimensions, materials, and pricing. The more information you provide, the easier it is for customers to make informed decisions.
- Pricing Structure: Be transparent about your pricing structure. If you offer customized quotes, provide clear instructions on how customers can request them.
- Search and Filter Options: Implement robust search and filter functions that help customers narrow down their choices quickly. This is especially important when dealing with a large catalog.
- Customer Support: Include easy-to-find contact information for customer support. Whether through live chat, phone, or email, customers should have a direct line to ask questions and seek assistance.
Step 5: Implement Online Features
To truly stand out in the B2B eCommerce space, consider implementing advanced, uniquely online features that enhance the customer experience:
- Online Quoting: Allow customers to request quotes online. This feature simplifies the negotiation process and streamlines purchasing for buyers.
- Order Tracking: Provide order tracking capabilities so customers can monitor the status of their orders in real time — this builds trust and transparency.
- Secure Payment Options: Offer multiple secure payment options, such as credit cards, ACH payments, and net terms. Furthermore, ensure that all payment transactions are encrypted and protected.
- Personalized Customer Portals: Create personalized customer portals that allow clients to access order history, invoices, and account information. This saves time and adds convenience.
By following these five steps, you'll be well on your way to establishing a successful B2B eCommerce presence as a manufacturer. Remember that the key to success in this endeavor is ongoing optimization and staying attuned to the evolving needs and expectations of your customers.
B2B eCommerce Manufacturer Examples
To help you get a better sense of what a successful B2B eCommerce site looks like for a manufacturer, explore a few real-world examples:
Stanley Black & Decker
A renowned manufacturer of tools and hardware, Stanley Black & Decker has embraced B2B eCommerce to serve its vast network of wholesalers and distributors. According to their 2021 annual report, they delivered 30% organic growth in 2021, with eCommerce now representing a $2.5 billion channel for the business globally — it also accounted for nearly 20% of their tools business.
Their user-friendly online platform offers a comprehensive product catalog, real-time inventory updates, and quick ordering options, making it convenient for their business partners to place orders and manage their accounts.
JBL
JBL, a subsidiary of Harman International Industries, is a well-known manufacturer of audio equipment. They have a full-featured B2B eCommerce platform that caters to retailers, dealers, and distributors worldwide. Their website features an extensive product range, detailed specifications, and easy bulk order capabilities, providing a seamless experience for their B2B clients.
Bosch
Bosch is a global leader in home appliances and industrial technology. Their B2B eCommerce platform allows partners in various industries to access product information, place orders, and track shipments with ease. Bosch's commitment to user experience and efficient order management has made them a prominent player in B2B eCommerce.
These manufacturers exemplify the successful integration of B2B eCommerce into their business strategies, showcasing how embracing digital channels can enhance customer relationships, streamline operations, and drive growth in various industries.
Next Steps & B2B eCommerce Platform Considerations
Now that you have a plan for moving into the B2B eCommerce space, take time to evaluate your business needs, objectives, and explore the right platform that aligns with your goals. In doing so, embrace the future of manufacturing via B2B eCommerce — this is not just a trend, but a fundamental shift in the way business is conducted in your industry.
Read More: Comparing the 6 Top-Rated B2B eCommerce Platforms in 2023
