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How Manufacturers Can Profit by Adopting the Online Marketplace Model

How Manufacturers Can Profit by Adopting the Online Marketplace Model

How Manufacturers Can Profit from the Online Marketplace Model white paper cover
Download the How Manufacturers Can Profit from the Online Marketplace Model white paper to learn more.

One of the largest business platforming opportunities in existence today comes from applying the online marketplace model to a manufacturer. This proven ecommerce model represents an opportunity for manufacturers to directly monetize their existing web traffic, while establishing an entirely new and transformative model of business that leverages and elevates existing channels.

Online B2B Marketplace: a Use Case for Manufacturers

Manufacturers, more than ever, are facing greater demand for frictionless buying experiences. That said, direct selling models can pose a number of challenges for manufacturers, such as how to maximize conversions, how to leverage customer data, and – perhaps foremost – how to mitigate channel conflict.

This is where the online marketplace model comes into picture. Here, a manufacturer has the flexibility to showcase their own items and sell direct to the consumer with fulfillment via existing channels. Your existing distribution chain gains another channel (your marketplace) as you sell and they fulfill, plus they get to become sellers on your marketplace and list their own services and related items, all of which you take a percentage. This is how manufacturers can monetize their existing web traffic while establishing a business platform that acts as it’s own scalable, self-sustaining ecosystem.

B2B Ecommerce Market Potential

B2B Buyers and Sellers Want the Same Things

The B2B Ecommerce market is growing faster and has a larger market potential than B2C, as B2B ecommerce currently generates more than double the revenue of it’s consumer counterpart. A Forrester study predicts that the B2B e-Commerce market will be worth $1.1T compared to the B2C market at $480B by the end of 2019. Millennials are becoming the most significant demographic group in today’s global B2B markets. As millennials step into decision making roles, they will begin to re-evaluate long-standing relationships and legacy processes or procedures in the B2B space. McKinsey predicts that with the rising prosperity and participation of the emerging world, global flows of goods and services will more than double, estimating that revenue would reach between $54 to $85 trillion by 2025.

Download the White Paper

To learn more about the opportunity presented to manufacturers by the online marketplace model, download the How Manufacturers Can Profit from the Online Marketplace Model white paper or contact us using the information below.

McFadyen Digital has helped some of the world’s largest brands deliver innovative Ecommerce and online marketplace solutions to their customers for over thirty one years. Please contact us at info@mcfadyen.com if you’d like to have a conversation about taking your own digital commerce experience to the next level.

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