Why do manufacturers (and their customers) need e-commerce?
Transformation in the manufacturing industry is being driven by consumer behavior —71% of all buyers are now millennials or Gen Z. These buyers are digital natives — they grew up with the advent of online ordering. As groundbreaking features such as 2-day shipping and one-click shopping became standard in their personal lives, these buyers began to raise their expectations of shopping in their business lives.
If I, as a consumer, can buy laundry detergent with the click of a button, then why can’t I, as a B2B buyer, buy business critical products just as easily?
Manufacturers that still primarily serve clients through phone, fax, or email risk losing the loyalty of these customers, especially as their worlds and preferences become even more digitally driven.
The good news is that B2B companies are responding to these new expectations. According to McKinsey, 65% of all B2B companies, regardless of industry, now offer e-commerce capabilities — up from 53% in 2021.
For manufactures specifically, it is clear that the industry has accepted the move to digital. According to our data in The Manufacturing & E-Commerce Benchmark Report, 98% of manufacturers have, are, or are planning to implement an e-commerce strategy. On top of that, 42% of the manufacturers who have invested in e-commerce and digital recognize improved customer relationships as a result.
In this same study, manufacturers reported that more than half of their overall revenue was generated via online sales channels. Manufacturers have come a long way since 2021 when 80% of manufacturers still depended primarily on their internal sales force to drive revenue.
However, as previously reported, 75% of buyers would switch to a supplier who offered a superior online buying experience. Manufacturers must continuously work to iterate and evolve their e-commerce offerings to stay ahead of the competition.
According to our buyer report, today’s B2B customers want to be in control of their experience online. Customers expect to be able to rely on accurate information, whether it is inventory levels, pricing, product details, order history, or their own negotiated discounts. They also want to be able to order wherever they are at any time.
That convenience doesn’t just benefit buyers. If a buyer in Peru wants to order a spare part for a hydraulic lift from a company in Austria, they would only have one business hour each day to connect via phone or email. With e-commerce, the buyer and seller don’t face this time zone constraint.
Convenience is just the tip of the iceberg; both buyers and sellers in the manufacturing industry stand to gain a lot from the benefits offered by e-commerce.