Comments on: Manufacturer Advantages In Direct-To-Consumer Selling http://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/ #1 Subscribed Ecommerce Blog Thu, 09 Feb 2012 02:57:16 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Paul Gersthttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19249 Paul Gerst Wed, 02 Sep 2009 16:33:36 +0000 http://www.getelastic.com/?p=4260#comment-19249 Linda; Thanks for the follow-up. I appreciate the clarification and perspective. Linda;

Thanks for the follow-up. I appreciate the clarification and perspective.

]]> By: Linda Bustoshttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19247 Linda Bustos Mon, 31 Aug 2009 23:48:27 +0000 http://www.getelastic.com/?p=4260#comment-19247 Hi Paul, It's common for manufacturers to make agreements with retailers before going online, in fact, many manufacturers avoid ecommerce because they don't want to even deal with that. Others will agree to just sell accessories or discontinued products or at a higher price than retail partners, or to use http://www.shopatron.com/ as a channel conflict mitigator. Patagonia also integrates inventory with retail partners to direct web traffic to local and web stores for partners. I imagine some manufacturers simply can't liase with every retailer if they have very large distribution, and even worse, the big-box stores with more negotiation power may also work out better terms with the manufacturer (on pricing, for example) which also hurts the smaller retail partner. Hi Paul,
It’s common for manufacturers to make agreements with retailers before going online, in fact, many manufacturers avoid ecommerce because they don’t want to even deal with that. Others will agree to just sell accessories or discontinued products or at a higher price than retail partners, or to use http://www.shopatron.com/ as a channel conflict mitigator. Patagonia also integrates inventory with retail partners to direct web traffic to local and web stores for partners.
I imagine some manufacturers simply can’t liase with every retailer if they have very large distribution, and even worse, the big-box stores with more negotiation power may also work out better terms with the manufacturer (on pricing, for example) which also hurts the smaller retail partner.

]]> By: Noviazgo Cristianohttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19245 Noviazgo Cristiano Fri, 21 Aug 2009 20:16:26 +0000 http://www.getelastic.com/?p=4260#comment-19245 I realize a lot of what I'm reading lately has to do with the current financial crisis, but your post is another story :) thank you for sharing this! I realize a lot of what I’m reading lately has to do with the current financial crisis, but your post is another story :) thank you for sharing this!

]]> By: Paul Gersthttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19243 Paul Gerst Wed, 19 Aug 2009 23:14:59 +0000 http://www.getelastic.com/?p=4260#comment-19243 Linda; How should manuf work with retailer before selling online? To me, it would be beneficial to all if manuf engaged their retail partners or (distributors to engage retailers). Maybe let their retailers know what they are doing and the purpose. A manufacturer whose product is one of our largest sellers just appeared one day with an online store to aggressively compete with us. We dont mind the competition, but are now less than enthusiastic about marketing their products to our customers. With a little advance notice, we could have helped them work together. Maybe this is a fantasy, but it seems manuf could use this opportunity to avoid channel conflict and build better relations with retailers. Linda;

How should manuf work with retailer before selling online? To me, it would be beneficial to all if manuf engaged their retail partners or (distributors to engage retailers). Maybe let their retailers know what they are doing and the purpose. A manufacturer whose product is one of our largest sellers just appeared one day with an online store to aggressively compete with us. We dont mind the competition, but are now less than enthusiastic about marketing their products to our customers. With a little advance notice, we could have helped them work together. Maybe this is a fantasy, but it seems manuf could use this opportunity to avoid channel conflict and build better relations with retailers.

]]> By: Linda Bustoshttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19241 Linda Bustos Wed, 19 Aug 2009 17:48:10 +0000 http://www.getelastic.com/?p=4260#comment-19241 Hi anonymous, Your comment is spot on, I agree there is more than B2C. I do realize there is a wealth of B2B manufacturing out there, which is why I clarified direct-to-consumer a few times in the first paragraph and throughout the post. We already have some posts planned for B2B issues that will be posted in the next few months. Keep your eyes open for them :) Hi anonymous,

Your comment is spot on, I agree there is more than B2C. I do realize there is a wealth of B2B manufacturing out there, which is why I clarified direct-to-consumer a few times in the first paragraph and throughout the post.

We already have some posts planned for B2B issues that will be posted in the next few months. Keep your eyes open for them :)

]]> By: anonymoushttp://www.getelastic.com/manufacturer-advantages-in-direct-to-consumer-selling/comment-page-1/#comment-19239 anonymous Wed, 19 Aug 2009 16:29:49 +0000 http://www.getelastic.com/?p=4260#comment-19239 I have to correct your categorization of manufacturers into four buckets... > 1. No retail stores, sell only through retail partners (e.g. Bose) > 2. Retail stores and retail partners (e.g. Sony Store) > 3. Retail stores, no retail partners (e.g. American Apparel) > 4. No retail stores or retail partners, only available online/phone (like Dell used to) Like many (possibly most) manufacturers, my employer does not sell through retail stores or partners. We do not make "consumer" goods, but we sell to our own consumers via many channels: field sales force, distributors in other countries, direct mail, phone, fax, eCommerce, EDI, etc. Consumer goods are not the entire economy. Keep in mind all the companies who make machinery, palettes, looms, lathes, test equipment, custom software, ball bearings, steel, plastic pellets, process analyzers, medical imaging equipment, specialized tools and thousands of other items which keep our economy and society going. These manufacturers face some of the challenges you've discussed lately, but you're missing their biggest challenges. How do you sell a complex, customizable and/or configurable products on the Web? How do you sell a product online when a consumer often wants to talk to a sales person to make sure the product is truly what they need? How do you find resources to provide copy for the thousands of items in your inventory, including items which may only sell a dozen units per year? How do you sell service plans and package offers on the Web? How do you keep all the documentation and support information for those products up to date on the Web? I'd love to read a series on these issues, even if you have to scrounge up a guest blogger or two. I have to correct your categorization of manufacturers into four buckets…

> 1. No retail stores, sell only through retail partners (e.g. Bose)
> 2. Retail stores and retail partners (e.g. Sony Store)
> 3. Retail stores, no retail partners (e.g. American Apparel)
> 4. No retail stores or retail partners, only available online/phone (like Dell used to)

Like many (possibly most) manufacturers, my employer does not sell through retail stores or partners. We do not make “consumer” goods, but we sell to our own consumers via many channels: field sales force, distributors in other countries, direct mail, phone, fax, eCommerce, EDI, etc.

Consumer goods are not the entire economy. Keep in mind all the companies who make machinery, palettes, looms, lathes, test equipment, custom software, ball bearings, steel, plastic pellets, process analyzers, medical imaging equipment, specialized tools and thousands of other items which keep our economy and society going. These manufacturers face some of the challenges you’ve discussed lately, but you’re missing their biggest challenges.

How do you sell a complex, customizable and/or configurable products on the Web? How do you sell a product online when a consumer often wants to talk to a sales person to make sure the product is truly what they need? How do you find resources to provide copy for the thousands of items in your inventory, including items which may only sell a dozen units per year? How do you sell service plans and package offers on the Web? How do you keep all the documentation and support information for those products up to date on the Web?

I’d love to read a series on these issues, even if you have to scrounge up a guest blogger or two.

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