The message from manufacturers to distributors is to get your e-commerce up to snuff, according to recent surveys conducted by Modern Distribution Management (MDM). A post earlier this month summarized some of the findings and analyses that pointed toward the importance of online transaction practices.
Dean Mueller and Jonathan Bein of Real Results Marketing are quoted in the MDM article, and they believe manufacturers understand that “the path to sales growth includes offering products in multiple channels, with e-commerce at the forefront.”
Mueller and Bein state that manufactures want to partner with distributors who have a more-established e-commerce channel because they “don’t have time to nurture distributors without solid e-commerce options.” MDM supports this claim with statistics that show manufacturers are actually further along in their e-commerce development than distributors. According to MDM, the percentage of manufacturers who report e-commerce as less than 10 percent of total revenue is lowering (from 57 percent in 2015 to 41 percent in 2016); meanwhile, the number of manufacturers reporting 10-30 percent e-commerce revenue is growing (15 percent increase from 2015-2016).
Distributors, on the other hand, haven’t been as quick to shift from the nascent (fewer than 10 percent revenue) to the mature (10-30 percent of revenue) stage. There has been only a 7 percent drop in the nascent stage and a corresponding 5-percent gain in the mature stage. In other words, distributors aren’t growing their e-commerce revenue as quickly as manufacturers.
MDM also claims that manufacturers are deliberately looking for distributors that will help develop markets and drive traffic to online channels. “They want partners that will help sell product benefits through the online channel, such as adding short videos about the products to their websites,” the article states.
Dirxion has seen an emphasis placed on rich media among its online catalogs customers. This emphasis has resulted in new developments like the “Videos” tab that stores a library of videos within the online catalogs interface. HD Supply showcases 14 different categories in its online catalogs videos tab, which can be found on the left-hand side of its interface.
In linking product numbers to e-commerce pages, Dirxion plays a vital role in strengthening the distributor’s e-commerce results. One of the most notable examples of this is MSC, whose e-commerce revenues continue to climb. Please visit the previous link for more information on Dirxion’s work with MSC.