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Role of E-commerce for Manufacturers

In this article, you will learn about the role of e-commerce for manufacturers. Commerce as the word itself describes it is an exchange of goods or services from one place or person to another place or person in large scale for money or kind. If this activity takes place in an electronic medium, it is said to be E-commerce.

Nowadays E-commerce is so common among people. E-commerce consists of various technological-business activities like supply chain management, mobile commerce, electronic fund transfer, internet marketing, online transaction processing, electronic data change, automated data collection system and inventory management system.

E-commerce covers three areas which are an

  • Online Auction
  • Online Retailing
  • Electric Market

There are several people who are involved in e-commerce business like a retailer, wholesaler, manufacturer and the buyer.

A manufacturer is a person who manufactures a product.

He can make his business easy along with earning more profit in an e-commerce business transaction. Due to this e-commerce is really necessary for a manufacturer.

Role of E-commerce for Manufacturers are as follows:

Let’s have a quick study into those reasons why e-commerce is needed for a manufacturer.

1. Increased Possibilities

For manufacturers in e-commerce, they deliver goods to the customers through online shopping and all. Here the manufacturers will be having their regular distributors to whom they sell their product for further sales, apart from this direct customers.

So the manufacturers can increase their sales network from distributors to direct customers without affecting their competition within the network and they can increase their business.

2. Direct Relationship with Customers


As e-commerce takes place in an electronic platform, the customers can directly interact with the manufacturers. Since there are no intermediaries between the two parties there evolves a direct relationship between them.

Apart from the direct relationship between them, the manufacturer can also eliminate certain costs which occur in the involvement of middlemen like retailer, distributor or any other third party.

3. Initiates Innovation

As the customers are directly purchasing from the manufacturers, they will be able to understand the customer’s taste and preference.

So the manufacturer will be able to know the seasonal needs of products for the customers, this will help the manufacturer in bringing innovative ideas as per the needs of the customer.

4. Efficiency Increases


The enterprise resource planning of e-commerce helps the manufacturers in increasing their efficiency.

When consumer places order for their product through online, the manufacturer has to look into certain things other than the delivery of product such a timely shipping, transparent payment gateway etc.

This helps the manufacturer to reduce errors in delivery along with increasing the efficiency of a manufacturer.

5. Consciousness about the Brand.

Along with finding new promising customers for manufacturers, E-commerce also helps the manufacturer to make aware of their brand to all people.

The manufacturers can advertise their product through various websites and search engines.

They can also develop a page or website for the purpose of brand awareness among new customers.

Wind-Up Summary

These reasons listed above are much enough for a manufacturer to concentrate in the e-commerce field. So realizing these it is necessary for the manufacturer to start an e-commerce business now itself. You learned about the role of e-commerce for manufacturers.

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