B2B Marketplace: How Manufacturers with Distributors Use Ecommerce

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I often speak with manufacturers that want to sell their products online, directly to retailers or even end users, sometimes through a B2B marketplace. But they have an established distribution channel that they don’t want to upset. Thus they avoid selling on an ecommerce site. The situation usually is something like this. A manufacturer wants to sell its products as quickly as possible. It is competing with other manufacturers that are selling online and don’t have the added cost of distributors. There is clearly a financial incentive in selling directly to consumers and retailers through a B2B marketplace: The manufacturer has a higher margin, or at least has greater control over its margins. But there is also a risk when distributors represent most of the manufacturer’s income and […]

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