Why Distributors Outgrows Manufacturers in eCommerce Growth

Distributors moving to eCommerce have a faster growth rate in eCommerce compared to manufacturers because their key customers are now younger which prefers online purchasing compared to traditional and face-to-face purchases. With millennials dominating the workforce and the progressive growth of Gen Zs entering the workforce each year, B2B eCommerce purchases would be more prevalent.

Younger demographics prefers digital commerce

According to Spiralytics, 52% of Filipino online shoppers are millennials, ranging from 25-34 years old. If you combine the data analytics from Gen Zs (aging from 18-24), they make up nearly 80% of all online shoppers. Due to purchasing power and adulthood, the millennials are more dominant in numbers compared to Gen Zs. 

In the Philippines, the dominant workforce age group are millennials, typically ranging from 25 to 34 years old. As a result, the majority of millennials are key decision makers for purchasing decisions for businesses. Another thing to take into account is that it is important to consider the growing presence of Generation Z individuals who are entering the workforce each year. Over the next 10 to 15 years, millennials and Generation Zs will tip the scale over other generations, as older individuals, including baby boomers, retire from the workforce. 

This demographic shift will lead to a significant change in the composition of the workforce, with millennials and Gen Zs eventually taking over and assuming greater influence in decision-making processes.

Shoppable Business is a B2B eCommerce marketplace in the Philippines transforming eCommerce availability to business-to-business purchasing models. In a B2B eCommerce marketplace, businesses can make procurement decisions much faster and efficiently rather than going back and forth between processes and approvals. With procurement done digitally, businesses streamline their procurement process, allowing them to shift their time and energy into things of utmost importance.

Shoppable Business is on a mission to grow B2B eCommerce in the Philippines and across Southeast Asia enabling businesses to hop on digitization.

Some say traditional B2B transactions are better due to better customer service, supplier relationships, and experience procurement of products in-person. However, in today’s evolving business environment, being able to do things quickly and efficiently is the key in staying ahead of the competition and adapting to business digitization is key.

With the convenience of eCommerce, purchases can be done remotely, faster, and efficiently. For B2B eCommerce, business purchases won’t have to go through the repetitive and long approval process of procurement. 

Digital Commerce in the Philippines

According to the US International Trade Administration in 2021, the Philippines eCommerce market sales reached PHP 956 Billion or (USD$ 17 Billion) contributed by 73 million active users. In 2022, In 2022, the Philippine eCommerce industry market is valued at ₱1.2 Billion GMV or ($19.8B GMV ,including both B2B and B2C markets) while Shoppable Business is valued at $300M. By, 2030, the eCommerce market in the Philippines will evaluated at $258B GMV or ₱15,198,909,000,000 (including both B2B and B2C markets) and Shoppable Business is aiming to be valued at $5.7B or ₱96,756,941 which is a 4.05x compared to 2025, and 14.76x growth in 8 years.

The Advantages of B2B eCommerce for Distributors

Expanded Reach: B2B eCommerce enables distributors to extend their geographical reach beyond their physical locations. They can reach customers in different regions in the Philippines or even neighboring countries. On another note, B2B eCommerce enables distributors to transact with businesses that buy in bulk, offering more profitability and scalability.

Increased Sales Opportunities: With an online platform, distributors can attract new customers and generate more sales leads. B2B eCommerce provides a convenient and accessible sales channel for businesses to discover and purchase products, leading to increased sales opportunities.

Streamlined Order Management: Ecommerce platforms enable distributors to automate and streamline their order management processes. This includes real-time inventory tracking, order fulfillment, invoicing, and payment processing, resulting in improved operational efficiency and reduced manual errors.

Enhanced Customer Experience: B2B eCommerce platforms offer personalized and self-service features for customers and businesses. Distributors can provide product catalogs, pricing information, invoicing, and order history, allowing customers and businesses to easily find and order the products they need. This improves the overall customer experience and builds customer loyalty.

Data-Driven Insights: Ecommerce platforms provide valuable data and analytics on customer behavior, buying patterns, and preferences. Distributors can leverage this information to gain insights into customer needs, optimize pricing strategies, and make informed business decisions to drive growth and profitability.

The Advantages of B2B eCommerce for Manufacturers

Direct Customer Relationships: B2B eCommerce allows manufacturers to establish direct relationships with their customers. By selling directly to businesses, manufacturers can gain valuable insights into customer preferences, market trends, and demands. This direct interaction enables manufacturers to tailor their offerings, develop new products, and improve customer satisfaction based on firsthand feedback.

Brand Control and Visibility: Manufacturers have greater control over their brand image and product presentation in the online marketplace. They can showcase their products, highlight unique features, and maintain consistent branding throughout the customer journey. This control over brand representation helps manufacturers differentiate themselves from competitors and build a strong brand presence.

New Revenue Streams: B2B eCommerce provides manufacturers with opportunities to explore new revenue streams. By leveraging their existing capabilities and expertise, manufacturers can create value-added services, such as offering maintenance contracts, installation services, or customized solutions. These additional services can contribute to increased revenue and customer loyalty.

Direct Pricing Control: Manufacturers can have more control over their pricing strategies in a B2B eCommerce setting. They can establish their own pricing models, set competitive prices, and adjust them based on market conditions and customer segments. This control over pricing empowers manufacturers to optimize profitability and maintain a fair balance between value and cost.

Competitive Advantage: By embracing B2B Commerce, manufacturers can gain a competitive edge in the market. Ecommerce platforms enable manufacturers to offer unique product configurations, customization options, or value-added services that differentiate them from competitors. This differentiation helps manufacturers attract and retain customers by addressing their specific needs and preferences.

The Fastest Growing B2B eCommerce Marketplace in the Philippines

Shoppable Business is on a mission to grow B2B eCommerce in the Philippines and across Southeast Asia, enabling businesses to hop on digitization. Through Shoppable Business, distributors, manufacturers, or any type of businesses can procure wholesale products and services they need to grow their business, minimize procurement process and costs, and do business with other businesses as well. 

Why Become a Seller in Shoppable Business

  • Access to a large customer base – giving businesses an opportunity to expand their reach and increase sales
  • Increased visibility and brand awareness – a platform for businesses to showcase their products/services and potentially attract new customers
  • BNPL (Buy now, Pay later) – grow your ASP; buyers/companies can apply for loans up to ₱150,000.00

Why Become a Buyer in Shoppable Business

  • Wide product selection from different categories – a one-stop-shop solution for businesses’ procurement needs
  • Save company time and money – Customized orders, RFQ for specific quantities, bundles, configuration, Track their orders, view purchase history  
  • Need it now but limited budget – Buy Now Pay Later – apply and get up to ₱150,000.00
  • 100% Authentic products only every time you buy.

Become a buyer or a seller today in the fastest growing B2B eCommerce marketplace in the Philippines.

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