In today’s fast-paced business world, embracing digital online tools, eCommerce, and digital marketing has become an increasingly important channel for businesses to reach customers and drive sales. Businesses have been leveraging technology to streamline operations, market their brand, and drive sales with the help of businesses tools to maximize their resources. Nonetheless, despite the beneficial utilization of digital channels, online business tools, and selling online, some manufacturers and distributors may have chosen to not embrace business digitization and stick to the traditional brick-and-mortar business model. There are various reasons why manufacturers and distributors won’t sell online which we will discuss further in this article. We will also explore achievable solutions on how manufacturers and distributors can sell online without compromising and disrupting their flow of distribution process and relationships with their clients.
8 Challenges & Solutions to Why Manufacturers and Distributors Won’t Sell Online
- Lack of Expertise
One of the first reasons why manufacturers and distributors won’t sell their products online is the lack of expertise surrounding business digitization. Learning to utilize digital tools for your business is definitely overwhelming especially when you’re putting up your business online. Manufacturers and distributors have been doing business since the 19th century during the industrial revolution. Modern manufacturing and distribution has started even before technology was able to help digitize businesses like we used to today. Well of course, one reason would be that some manufacturing and distribution businesses are already used to the traditional ways and they find no reason to fix something that isn’t broken. On our defense, putting up your business online isn’t a fix to a problem, but a leverage for your business to produce more results with maximized efficiency.
Solution: A B2B eCommerce Marketplace with straightforward and user-friendly seller dashboard
A B2B eCommerce marketplace in the Philippines, Shoppable Business, enables businesses to sell, market, and post their products in a marketplace easily through its straight to the point product catalog listing and seller account dashboard allowing you to easily update product pricing, quantity, and availability.
- Distribution Agreements
One of the reasons why manufacturers and distributors won’t sell online is because of the exclusivity of how they distribute their products to customers and clients. Per business, it depends on how they set up their distribution agreements with brick-and-mortar businesses or other third-party retailers which can prevent manufacturers and distributors from selling their products online.
Solution: Customized Contracts in Online B2B Marketplaces
Since most B2B marketplaces are designed for business to business transactions, Shoppable Business can provide your business with customized contracts, negotiations, and other transaction terms for your customers and clients. This allows manufacturing and distributing businesses to stay exclusive the way they intend to without compromising the way they do business.
- Complexity of Shipping and Logistics
Another reason why manufacturers and distributors won’t sell their products online is because it makes shipping and logistics complex. Depending on the size, weight, and quantity of products they sell, it is challenging to manage shipping and logistics. Another over the demand of orders coming from an online store. Since eCommerce is available
Solution: Integrated shipping and logistics solution in a B2B eCommerce Marketplace
Managing shipping and logistics without the assistance of a third-party logistics and inventory partner can slow down business. Well, Shoppable Business can handle all of your inventory, shipping, and logistics needs in order for manufacturers and distributors to push out more orders. You can just sit tight, watch sales come through, manage online orders on your end, and Shoppable Business will do the heavy lifting of taking care of your inventory and delivering it to your clients and customers. If you have your own shipping and logistics operations, you can also integrate it with Shoppable Business to make things easier for your business to handle the complexities of shipping and logistics.
- Lack of Control over Branding
As mentioned above, some manufacturing and distribution businesses have exclusivity with distribution agreements with third-party retailers. They may overcome branding challenges such as how their products are marketed and presented to customers in an online marketplace. Another thing to mention is that, most manufacturers and distributors are afraid of the potential counterfeit products or unauthorized resellers on online marketplaces which can heavily impact negatively on their products and brand.
Solution: A B2B Marketplace that vets sellers and suppliers in their platform
It is completely understandable that a business would be worried about other people reselling their products on unauthorized business. A solution for that would be to join a B2B eCommerce marketplace platform that vets sellers and suppliers in their platform. Shoppable Business, only allows vetted suppliers and sellers to sell their products on its marketplace platform which guarantees 100% authentic products only when you buy in Shoppable Business.
- Limited Product Availability
The availability of eCommerce can be an advantage to drive sales even when you’re off business hours. Well, for manufacturers and distributors with limited resources and limited product availability, it can be a problem to catch up with the demands of customers and clients.
Solution: Buy Now, Pay Later Financing Solution
If you’re a manufacturer or a distributor that faces financial challenges to keep your inventories full and keep up with the demand of your customers and client orders, or you want to expand and grow your business; Shoppable Business offers a Buy Now, Pay Later (BNPL) program which you can loan up to ₱20M to help expand your business.
- Market Competition
Now matter what industry your business is in, whether its food or construction, it is a throat-cut industry with a lot of businesses in the competitive market. Manufacturers and distributors shouldn’t be afraid of their competitors winning clients over them because most buyers are well informed and would be able to differentiate the best suppliers with best prices and deals.
Solution: Integrated SEO and Ads in the Marketplace
If you’re worried about competition and how to market your products with thousands of businesses across a B2B eCommerce marketplace then Shoppable Business can help you market digitally. Shoppable Business enables businesses to integrate SEO optimization to their products, profile page, and product descriptions to make it easier for potential customers and buyers to come across your products. If you want to take the next step of marketing your products, you can also place banner ads for your business and products within the marketplace so you would have better visibility for customers scrolling and searching through the marketplace.
- Regulatory compliance
Tax and business compliance to government regulations can take a lot of time from your business. We know how difficult it is to process government related documents in the Philippines as it is known to be stressful and time consuming. Manufacturers and distributors are worried to embrace online selling because it would be an extra step to comply with regulatory compliance.
Solution: A B2B eCommerce Marketplace that issues sales invoices to clients
Joining a B2B eCommerce marketplace in the Philippines like Shoppable Business provides sales invoice to businesses that need it and BIR form 2307 for business tax compliance. This way, your business won’t have to worry about the extra step of invoice and receipts issuance and for every sale you make, rest assured that invoices are provided for businesses who need it.
- They think that eCommerce is expensive
One misconception that most businesses think is that joining an eCommerce marketplace for their business is expensive. Well, in some cases, it might be true. Since depending on how small or big your business, subscription fees and plans would vary depending on the tools you would need to operate your business.
Solution: A flexible eCommerce solution for your business in the Philippines
If you’re worried about the expensive fees of setting up your manufacturing and distribution business in an online marketplace then Shoppable Business can help you to start your business selling online. With Shoppable Business, you can sign up as a seller and digitize your business for FREE! Or if you’re already an established business that requires access to comprehensive online tools to operate your business, Shoppable Business provides flexible plans and solutions, which means you can only pay for what you need instead.
It’s time to expand your business through digitization
With more and more businesses embracing technology and digitization to make their operations streamlined, the more your business should catch up with the trends to save more time and money. Customers are now accustomed to go online first to look for items or products to purchase rather than going to physical stores because it is more convenient and everything they need can be accessible online. If you’re still having doubts about selling your products online, then try Shoppable Business as a buyer or a seller and we’ll make sure that your business gets what it deserves to grow and expand without compromising your existing business operations.
