Manufacturers Consider Selling Direct via Internet
Just about any manufacturer that sells through
middlemen stands to get closer to its customers and improve
its profit margins by selling direct.
But its a bit more complicated than that. Large retailers are
threatening to stop selling products made by manufacturers who
sell via their own web site. Where does that leave a small
retailer?
When it comes to purchasing a commodity, say a Stanley
hand tool or a Black & Decker Workmate, what value does
any bricks-and-mortar retailer provide? Wouldnt the same
transaction be at least as easy, and faster, over the Internet,
perhaps at a better price, without a middleman?
The question both manufacturers and retailers must ask is
whether customers are choosing the products in these retail
outlets or the outlets themselves. At least in some cases, its
the former. And those cases underscore the need for a
focus on customer service, and making the shopping
experience convenient and painless. If the retailer is trying to
win and maintain customers online, the same standards of
service apply.
Some manufacturers may opt for a Web presence that gives
customers everything--product specifications, customer
support, etc.--except the ability to buy the product. Such a
strategy is ill-advised. If youve done everything but close the
deal, why not let customers buy on the spot?
The Web has forever altered relationships between
manufacturers and the entities that sell their products. The
good news is, thats forced everyone in the value chain to
deliver more value to the customer.
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