2D Sales Drawings
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Image credit and source: DigitalCommerce360.
Industrial Manufacturer eCommerce Adoption and Maturity
DigitalCommerce360’s new 2019 B2B Manufacturer 300 research report shows that eCommerce adoption and maturity by industrial manufacturers differs widely. As they say, “only five of the manufacturers in the study are well on their way to becoming digital-first companies, with web-based sales making up more than 25% of total revenue.” However, if you note the line we’ve highlighted in their graphic above, three of the five are industrial product manufacturers! It’s also worth noting that this report includes just manufacturers, not distributors, so the leading industrial distributors, such as Grainger and MSC (who have >50% of revenue via eCommerce), are not included. See Industrial B2B eCommerce – a mid-2019 Update for a broader update including distributors.
The sample size is small but clearly most industrial manufacturers have adopted eCommerce – only about 1 in 10 have eCommerce revenues less than 1% of total revenue. At the other end of the scale, about 1 in 4 Industrial manufacturers have eCommerce revenue (as a percentage of total revenue) greater than 5%, and about 1 in 7 have eCommerce revenue greater than 25%. Conversely, almost 70% have eCommerce sales between just 1% and 2% of total revenue. The rest are scattered in between 2% and 25%.
Industrial eCommerce ROI
Like any business investment, eCommerce should be planned with a return on investment (ROI) then monitored to confirm the actual ROI achieved over time. As in any ROI calculation the expected financial benefits need to be set against the costs of creating and running the eCommerce. Examples we’ve seen indicate many are taking a too simplistic approach to their ROI calculations and missing some important considerations. Here’s a partial list of possible considerations – choose those that apply to your situation:
As always, if you have comments or suggestions please make them below, click to ask us a question or call for a discussion. For CAD questions see: Digital Marketing with CAD – Get the FAQs! In the meantime we’ll continue to keep you up-to-date on eCommerce and new technologies impacting industrial suppliers