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Why do manufacturers use wholesalers rather than sell their goods directly to retail outlets?
Wholesalers are able to sell their products for a lower price as they are selling in bulk, which reduces the handling time and costs involved. They usually provide large quantities of goods, but can take on orders for smaller quantities as well.
Why do consumers shop on marketplaces?
Increasing customer loyalty and trust starts with increasing your brand’s credibility. Marketplaces are built to help brands succeed. Marketplaces offer trusted reviews and place your products in front of consumers through suggested products and promotions.
What is the purpose of marketplace?
A market, or marketplace, is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods.
Why do manufacturers want to sell products online?
A manufacturer wants to sell its products as quickly as possible. It is competing with other manufacturers that are selling online and don’t have the added cost of distributors.
Should manufacturers allow distributors to sell competitors’ products online?
If its distributors are not selling products online, a manufacturer could consider allowing the distributors to add competitor’s products to the site. This would encourage the distributors to use the site as their main ecommerce outlet, thus saving them the headache of setting it up themselves.
How can manufacturers build profits through ecommerce?
Another option is for manufacturers to create an ecommerce store and then sell products at a higher price than their distributors. This provides the convenience for buyers who prefer buying directly from the manufacturer, or have otherwise found the manufacturer’s site, not a distributor’s. This scenario provides manufacturers with higher margins.
How can manufacturers use websites to promote their products?
Manufacturers could use their websites as catalogs, where buyers search the products and access helpful resources, such as specification sheets, images, and videos. The product pages would have a button that directs buyers to a distributor, where they complete the purchase. There are a few ways to do this.