Three reasons why it is interesting for a manufacturer to have an online store

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Profile picture for user Angela de la Vieja

Angela de la Vieja

On many occasions we assume that all brands have taken the step towards e-commerce, however this is still very far from the reality.

For example, luxury brands are still reluctant to sell online, because they believe that they cannot get online that experience of exclusivity that they do get through the physical stores. It may be a compelling reason, however the pressure to increase the volume of the business is getting some of these brands to begin the process, slowly but steadily. This particular sector is close to a turning point, as reflected in the McKinsey & Company report on the luxury sector, and soon we will see large exclusive brands fighting for their online space like any other firm.

Unlike the luxury sector, brands hesitate to embrace online sales or do not do so by arguing for other reasons: channel management and digital experience. The manufacturers know that they will have to generate a digital sales channel that they do not have, and in addition to this they must define new rules for the physical channel, so that everything works in a harmonious way. Manufacturers also know that they need to acquire knowledge of online markets and accelerate their digital transformation to be truly competitive.

But among so many doubts and arguments, some brands seem to only see the half empty glass and not the opportunities they are wasting. That's why we will give three reasons why a manufacturer should have interest in having an online store:

1. The sale margins in ecommerce it is evident that they are superior to those of the sale through the channel. It is true that an ecommerce requires an investment that needs to be amortized, but with the proper management the numbers work out.

2. An ecommerce is not only a transactional space, although its function is essentially the online sale. An ecommerce allows you to deploy the full power of the brand and manage the catalogue products, which is beyond the scope in the commercial channel. Many brands have quickly learned how to get additional benefits in addition to the strictly monetary ones. An example is the pre-ordering or pre-sale campaigns, in which a brand reserves for its own ecommerce, the launch and pre-sale of its star products before marketing them extensively through the channel. This selling in advance is a tactic that is used in many sectors, such as consumer technology, video games or the publishing industry, among others. The benefits of this practice can be multiple if it is also managed with good content, from the impact of the brand on media to, of course, anticipated sales revenue.

3. The direct relationship with the buyer is probably one of the most valuable assets that a brand can have, and an ecommerce is the direct channel to know first-hand the needs of the customer. The study of online shopping behaviour, information on customer usage preferences, complaints, ratings and comments on the product page, responses to newsletters are just a few of the possibilities that go hand in hand with an ecommerce and that allow that direct relationship that allows you to know the client to learn and offer better products.

Some time ago in this same blog we published the article 'The five basics of a successful ecommerce' how to plan those first steps to start in online commerce. Getting an online store to succeed can seem like a complex task (in fact, it is), but in this digital and e-commerce world, ecommerce can no longer be a pending subject for any manufacturer.

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