B2B Ecommerce for Manufacturers: Trends and Strategies

The digital game has changed everything, including how businesses buy and sell. While online shopping is old news for most consumers, many manufacturers are still stuck in the past. 

It’s time to level up.

You certainly know the drill – manufacturers are used to turning raw materials into amazing products. But keeping up with how customers want to do business is another story. These days, buyers expect a smooth online experience, just like they get when shopping for their favorite products.

At Elogic, we’ve seen dozens of online stores for ecommerce manufacturing challenge the status quo of the industry. And we’ve helped them grow and run your business like a well-oiled machine using the latest tech and industry know-how.

In this article, we’ll show you why going online is a no-brainer for manufacturers, share some success stories of manufacturing ecommerce development, and give you a roadmap to make it happen. Let’s dive in!

Why Is Now the Right Time to Invest in Ecommerce for Manufacturers?

The B2B landscape is undergoing a seismic shift, driven by evolving customer expectations and technological advancements. The decision to embrace an ecommerce solution for manufacturing is no longer a question of “if” but “when.” 

Check out seven most compelling reasons to invest in a B2B ecommerce platform.

Broader customer reach

Your customers are changing. Fast. Millennials and Gen Z are taking over the business world, and they don’t play by the old rules. These digital natives, who make up a whopping 71% of B2B buyers, want to shop online just like they do for their personal stuff.

More than a third of them are already buying (or want to buy) without picking up the phone. In fact, the trend to move substantial B2B manufacturing processes online increases. According to the B2B Buyer Survey: Manufacturing Industry Results, the number of manufacturing buyers who say they purchase on digital platforms is increasing by four times in just four years.

If you’re not online, you’re missing out on a huge chunk of potential customers. It’s like opening a store without a front door. With an online store, you can reach customers anywhere.

Lower costs

Running a manufacturing business isn’t cheap. You’ve got costs piling up everywhere – from printing those fancy catalogs to paying your sales team to hit the road. It’s a never-ending cycle.

And here’s the kicker: companies who’ve made the switch to B2B ecommerce have seen some serious savings. A McKinsey study highlighted a case where a global industrial manufacturer reduced product unit costs by over 30% through digital transformation efforts.  It’s real money back in your pocket.

The reason is twofold: First off, say goodbye to those expensive catalogs. Your products can live online, 24/7, without costing you a dime to print or ship. Plus, you’ll reduce the need for as many sales reps, saving you money on salaries and travel expenses.

But it’s not just about cutting back. Automation can be your new best friend. An online store can handle order processing, invoicing, and even inventory management. Less paperwork, fewer errors, and more time to focus on growing your business. It’s like having a super-efficient robot working for you.

Higher customer satisfaction

Imagine this: your customers can easily find the information they need, without having to wait on hold or play phone tag. They can explore your product range in detail, compare options, and make informed decisions. This kind of control puts them in the driver’s seat and makes them feel valued.

And let’s not forget about self-service. Online platforms let your customers handle things like order tracking and returns without bothering your team. It’s like giving them a magic wand to solve their own problems. Companies like Schneider Electric have seen a huge boost in customer loyalty by putting their customers in control through their EcoStruxure platform, which allows clients to manage and optimize operations remotely. 

Happy customers are loyal customers, and an online store is the key to unlocking that happiness.

More informed decision making

Data is your secret weapon. An online store is like a treasure chest of information about your customers and how they behave.

Want to know what products are hot?

Or which marketing campaigns are working?

Your online store has the answers.

Moving your business online and connecting it with the right back-office systems might become a goldmine. You’ll get real-time data on what your customers are buying, how much they’re spending, and even where they’re coming from – all under one roof rather than scattered around spreadsheets.

For instance, Amazon has combined ecommerce and manufacturing and leveraged data insights to increase their revenue and improve customer satisfaction. Their personalized recommendation engine accounts for 35% of its annual sales.

With an online store, you can analyze your customer behavior just like Amazon, track sales trends, experiment with different pricing strategies, and measure the impact of your marketing efforts. 

Increased efficiency

Let’s face it: manual work takes too much time and effort. From processing orders to managing inventory, there’s a ton of paperwork and number-crunching involved. An online store is like hiring a super-efficient assistant who never complains or makes mistakes.

With automation at your fingertips, you can wave goodbye to those endless spreadsheets and manual data entry. Your team will have more time to focus on the stuff that really matters, like product development and customer service. Companies who’ve embraced automation have seen a boost in productivity and reduced operational costs.

Read more: Building an Ecommerce Team: A Best Practice Guide

Imagine a world where orders are processed instantly, inventory levels are always up-to-date, and your team is free to be creative. That’s the power of an online store.

Higher visibility of your product catalog

Your products deserve a spotlight. An online store is like a 24/7 showroom that’s open to the world. With high-quality images, detailed descriptions, and easy-to-use navigation, your customers can explore your product range at their own pace.

But it’s not just about showcasing your products; it’s about getting found. By optimizing your product pages for search engines, you can increase your visibility and attract new customers. It’s like having a built-in marketing team working for you around the clock.

The Impact of Ecommerce on Manufacturers: Success Stories

Seeing is believing! Let’s dive into real-world examples of ecommerce for manufacturing companies and how manufacturers have harnessed the power of B2B ecommerce to achieve impressive results. 

Witness how these companies transformed their businesses, overcame challenges, and ultimately found success through digital transformation.

Wexon

Wexon, a leading manufacturer of industrial automation components, embarked on a significant digital transformation journey with Elogic as their technology partner. Prior to implementing a B2B ecommerce platform, Wexon relied heavily on paper catalogs and manual order processing, losing clients because they couldn’t keep track of everything.

Through strategic collaboration, Elogic not only built a B2B ecommerce website for the brand to showcase their vast product line, but also integrated it with a powerful Epicor ERP that streamlined the company’s operations. 

Wexon experienced a significant increase in online orders, reduced processing time, and improved customer satisfaction. This case study demonstrates the transformative power of B2B ecommerce when coupled with the right technology partner.

General Electric

Once a behemoth dominated by traditional manufacturing processes, General Electric found itself dealing with the challenges of a rapidly evolving digital landscape. Legacy systems and siloed operations were hindering the company’s ability to compete. Recognizing the limitations of traditional manufacturing, GE embarked on a digital transformation journey that would redefine its business model.

The cornerstone of this transformation was a significant investment of over $4 billion in digital initiatives. Spearheaded by former CEO Jeff Immelt in 2008, the company set out to transition from a global industrial giant to an Industry 4.0 pioneer. Key components of this overhaul included the development of Fastworks, a lean methodology incorporating design thinking and agile principles for rapid product innovation. 

Additionally, GE invested in business analytics and sensor technology to extract valuable insights from its operations.

GE established GE Digital, a dedicated division focused on combining analytics with a cutting-edge platform called Predix. Developed using agile methodologies, Predix served as the foundation for GE’s digital ecosystem.

To ensure a coordinated approach, the company appointed Chief Digital Officers for each industrial vertical, reporting directly to the head of GE Digital. Furthermore, GE created Digital Foundries to assist both internal teams and external customers in their digital transformation efforts.

Through these strategic initiatives and a substantial financial commitment, GE has successfully transformed itself from a traditional manufacturer into a digital powerhouse. This journey underscores the critical role of leadership, innovation, and cultural adaptation in driving successful digital transformation.

Amerheart

Founded in 1940, Amerhart has been a cornerstone of the Midwest building materials industry for generations. Their commitment to exceptional customer service was unmatched. But as younger generations entered the workforce and competitors embraced ecommerce, Amerhart realized it was time to level up.

The company’s goal was simple: make it easier for customers to do business with them. By launching an ecommerce platform, Amerhart empowered customers with features like personalized pricing, easy ordering, and multiple delivery options.

It wasn’t just about convenience; it was about data. Since incorporating Digital Experience Platform, Amerhart has deployed about 50% of their product catalog online with more than 880 registered users.

Amerhart’s journey is proof that even long-standing, family-owned businesses can thrive in the digital age.

Features Most B2B manufacturers Are Looking For in Ecommerce

B2B manufacturers have unique ecommerce needs. And at Elogic, we’ve seen them all.

Having worked with manufacturer ecommerce clients since 2009, we’ve compiled a list of core functionalities that are essential for success in this competitive market. These aren’t just theoretical features; they’re the ones our clients consistently prioritize and find indispensable.

Complex product configurations

Manufacturers often deal with intricate products that require various options and customizations. For instance, cars and trucks can be configured with different engine types, transmissions, exterior colors, interior trims, technology packages, and seating arrangements.

The ecommerce platform must effortlessly handle complex product configurations, generating product specifications based on the chosen elements and accurate pricing with a built-in CPQ for B2B ecommerce. This ensures customers can easily build the exact product they need while the manufacturer maintains control over the process.

B2B and B2C dynamics

It’s not uncommon for B2B manufacturers to switch to the B2C model, and vice versa. You’ll want to make sure your ecommerce platform supports both.

Read more: The Best B2B Ecommerce Platform: How to Choose the Right Solution for Manufacturers And Wholesalers

Apparently, these two customer segments have distinct needs. B2B customers often require complex features such as bulk ordering, customized pricing, and account management with multiple user roles and approval workflows. 

For instance, a manufacturing company might need to offer volume-based discounts, net payment terms, and purchase order integration for wholesale clients, while providing a simplified checkout process for individual consumers buying a single product. 

On the other hand, B2C customers prioritize a user-friendly interface, quick checkout, and personalized product recommendations. A successful platform must seamlessly adapt to these varying expectations, offering a consistent experience while accommodating the specific requirements of each customer type.

Supply chain integration

Real-time inventory visibility is paramount for manufacturers. Effective ecommerce platforms integrate seamlessly with supply chain systems to provide accurate stock levels, preventing stockouts and ensuring efficient order fulfillment. This integration streamlines operations, reduces costs, and enhances customer satisfaction.

Quoting and quotation management

B2B sales often involve negotiations and custom quotes. The platform should streamline the quotation process, allowing for easy creation, management, and approval of quotes. Features like quote templates, expiration dates, and version control can significantly improve efficiency and sales productivity.

Product documentation

Detailed product information is crucial for manufacturers. The platform should provide a centralized repository for product manuals, specifications, certifications, and other relevant documents. This empowers customers to make informed decisions and reduces the burden on customer support.

International sales and distribution

For manufacturers with a global reach, the platform must support multiple currencies, tax regulations, and shipping options. It should also accommodate language and cultural differences to ensure a localized shopping experience for customers worldwide.

Read more: How to Sell Products Abroad: Prepare for Your Online Business Expansion

Customization and configure-to-order

Many products, such as automobiles, computers, furniture, and industrial equipment, require customization. The platform should guide customers through configuration options, providing visual representations of the final product and generating accurate pricing and product specifications. This empowers customers to design their desired product while streamlining the manufacturing process.

After-sales support

Strong after-sales support is crucial for complex products due to their inherent complexity and potential for technical issues. The platform should facilitate warranty registrations, provide access to product information, and enable efficient customer communication. Features like online support chat, knowledge bases, and warranty tracking can enhance customer satisfaction and loyalty.

Integration with ERP systems

Seamless integration with existing ERP systems is essential for maintaining accurate data and streamlining operations. This ensures a smooth flow of information between the ecommerce platform and other business systems, reducing manual data entry and minimizing errors.

Read more: ERP for Ecommerce: Benefits & Integration Steps to Transform Your Business 

Digital transformation

The ecommerce platform should align with the manufacturer’s overall digital transformation strategy. This includes features like IoT integration for real-time data, predictive maintenance capabilities, and support for smart manufacturing initiatives. By embracing digital technologies, manufacturers can improve efficiency, reduce costs, and gain a competitive advantage.

Bulk order management

Efficiently handling bulk orders is crucial for manufacturers. The platform should simplify the ordering process, offer bulk pricing options, and manage large order quantities effectively. Features like order history, purchase order management, and automated order processing can streamline operations and improve customer satisfaction.

Dynamic pricing

Manufacturers often need to adjust prices based on factors like order volume, customer loyalty, or market conditions. The platform should support dynamic pricing strategies to optimize revenue and profitability. This enables manufacturers to remain competitive and maximize returns.

Challenges of Ecommerce Manufacturing

Moving your business online isn’t always a smooth ride. B2B manufacturers face some unique challenges, such as having to train staff on the use of new technologies, loss of data, extended timelines, and others. Let’s dive deeper. 

Steep learning curve and resource allocation

Manufacturers often operate with established, in-person sales and operational processes. Shifting to an online platform requires substantial learning and adaptation. This includes understanding ecommerce platforms, digital marketing, customer relationship management (CRM), and website development. Significant financial investments in technology, software, and potentially new infrastructure may also be necessary.

Overcoming the digital divide

Many manufacturers have existing customer relationships built on personal interactions and trust. Replicating these connections digitally can be challenging. Building an online presence that effectively communicates product value and fosters trust can be time-consuming. Manufacturers may also need to invest in employee training to equip their teams with the digital skills required for success.

Complex product configuration and customization

Manufacturing often involves complex products with various options and customizations. Effectively presenting these options online while maintaining accuracy and clarity can be daunting. Ensuring that customers can easily configure products to meet their specific needs is crucial for a successful online sales process.

Supply chain integration

Integrating the manufacturing process with ecommerce can introduce new complexities. Managing inventory levels, fulfilling orders promptly, and ensuring accurate order tracking across different systems require careful planning and coordination. Disruptions in the supply chain can have a direct impact on customer satisfaction and online reputation.

Data security and privacy

Protecting sensitive customer and business data is paramount in ecommerce. Manufacturers handle a wealth of information, including customer details, payment information, and proprietary product data. Implementing robust security measures and complying with data privacy regulations is essential to build customer trust and avoid costly breaches.

9 Things to Consider for Manufacturers If You Plan on Taking Your Business Online

The decision to take your manufacturing business online is a strategic leap. However, it’s essential to approach this transition with careful planning. By addressing the unique challenges and concerns manufacturers often face, you can set your business up for success in the digital marketplace.

Here are 9 key considerations to ensure your manufacturing ecommerce journey takes off smoothly:

Know your B2B customers

Understanding your target audience is essential. Leverage market research and analytics to delve into B2B customer behavior online. What are their pain points? What information do they seek? By understanding the ecommerce customer journey, you can design an ecommerce experience that caters to their specific needs.

Click to download an editable ecommerce customer journey map PDF

Develop a comprehensive ecommerce strategy

Taking your business online requires a well-defined plan. Ask yourself the following questions:

• What products or services will you offer online? 
• How will this integrate with your existing sales channels? 
• What will be the impact of ecommerce on your supply chain and distribution?
• Will you need to adjust your existing processes to accommodate online orders?

A well-thought-out ecommerce strategy is essential for a successful online transition. By carefully considering these factors, you can create a seamless customer experience and optimize your operations for the digital marketplace.

Define your ecommerce platform requirements

Not all ecommerce platforms are created equal. Outline the functional and non-functional requirements for your online store, considering factors like product complexity, order management, inventory control, customer relationship management (CRM) integration, and security protocols. 

If you manufacture complex machinery with numerous components and configurations, you’ll need a platform that can effectively manage detailed product information, including customizable product pages and options.

Functional requirement example for manufacturers: The website shall be integrated with Odoo ERP system and Svea payment solutions.
Non-functional requirement example: Our main goal for the next two years is to expand our customer base to young decision makers, so the website shall have a self-service B2B portal.

Choose the right ecommerce platform for you

With a clear understanding of your needs, research and evaluate different manufacturing ecommerce solutions. Consider comprehensive enterprise solutions like Salesforce Commerce Cloud or Adobe Commerce Cloud for advanced features and scalability. 

Alternatively, industry-specific platforms like OroCommerce or inRiver offer tailored solutions for manufacturers. Niche platforms also exist for specific sub-industries. When evaluating options, prioritize factors such as scalability, customization, integration capabilities, security, and vendor support.

Building and integrating your ecommerce website

Your website should be a digital extension of your brand, designed with your B2B customers in mind. Create an intuitive and user-friendly platform that reflects your company’s identity while providing comprehensive product information and specifications. 

Prioritize seamless integration with your ecommerce platform, CRM, and ERP systems to ensure a smooth customer journey. Optimize your website for search engines to improve visibility and attract potential customers. By delivering a valuable and informative online experience, you can build trust, generate leads, and drive sales.

Customize your product catalog for online sales

Compelling product listings are the cornerstone of successful online sales. Invest in high-quality product imagery, detailed descriptions, and accurate pricing to effectively showcase your offerings. Consider implementing product personalization features, such as recommendation engines based on customer purchase history, to enhance the shopping experience and drive sales.

Implement flexible pricing strategies

To maximize profitability and competitiveness, consider implementing flexible pricing strategies tailored to your manufacturing business. Explore volume-based discounts to incentivize larger orders. Offer tiered pricing structures based on customer segments or order value. 

Leverage dynamic pricing tools to adjust prices in real-time based on market conditions, inventory levels, and competitor analysis. By adopting a dynamic pricing approach, you can optimize revenue while maintaining customer satisfaction.

Streamline your checkout process

A streamlined checkout process is crucial for converting website visitors into customers. Minimize form fields and offer multiple secure payment options to simplify the purchasing process. Provide clear shipping information, including estimated delivery times and costs. 

Read more: Is Your Checkout Slow? Here is How to Speed up Magento 2 Add to Cart Action

Consider offering a guest checkout for convenience. Implement abandoned cart recovery strategies to re-engage customers who left items in their cart. By optimizing the checkout experience, you can reduce cart abandonment rates and increase sales.

Market your business for growth

To reach your target audience and generate leads, develop a comprehensive digital marketing strategy. 

Leverage search engine optimization (SEO) to improve your website’s visibility in search engine results. Create valuable content, such as blog articles, whitepapers, and case studies, to establish your business as an industry authority. 

Take advantage of email marketing to nurture leads and retain customers. Implement social media marketing to engage with your audience and build brand awareness. By combining these marketing channels, you can drive website traffic, generate leads, and increase sales.

Afterthought

The manufacturing landscape is evolving at breakneck speed. B2B buyers now expect the same seamless online experiences they enjoy in their personal lives. Ignoring this trend puts your business at a significant disadvantage.

This guide has provided a roadmap for navigating the exciting world of manufacturing ecommerce. We’ve explored the key considerations for a successful online launch, from understanding your customers to developing a strategic plan and choosing the right platform.

However, navigating this digital transformation can be complex. Elogic has extensive experience in advising and consulting businesses on the best manufacturing ecommerce solutions for their unique needs. Our team of experts can help you identify your goals, develop a winning strategy, and implement the right tools to achieve sustainable growth.