- On August 3, 2021
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- cfo, ecommerce, ERP, finance, increase profit, manufacturing, online shopping, technology
Maximize E-Commerce Investments: A Gold Mine for Modern-Day Manufacturers
The global e-commerce market is set to reach $4.89 trillion this year and $6.3 trillion in the next 3 years. The US e-commerce market alone is expected to reach a whopping $843 billion by the end of the year (1). Clearly, e-commerce presents a huge financial opportunity for consumer product manufacturers and finance leaders are witnessing massive benefits with the adoption of digital selling models. While the initial adoption of e-commerce is not a simple and can sometimes be costly, the benefits and profitability far outweigh the costs. Integrated technology can help small and midsize businesses maximize e-commerce investments.
How Many People Shop Online?
The e-commerce marketplace has seen a massive boom across all industries in recent years and companies are reaping huge financial benefits since they can expand into new customer segments and target markets. 93.5% of global internet users have purchased products online (2). It is estimated that over one quarter (27.2%) of the world’s entire population, meaning 2.14 billion out of 7.87 billion people, will shop online by the end of 2021 (3). And that is just the beginning! Some predict that 95% of all purchases will take place through e-commerce by the year 2040 (2).
What Is the State of E-Commerce for Manufacturing?
For the manufacturing industry, the e-commerce market is an absolute gold-mine. Small and midsize businesses who maximize their e-commerce investments see significant cost-savings by selling direct to consumers and appealing to modern B2B consumers. According to the Census Bureau’s 2018 E-Commerce Statistics report, manufacturing e-commerce shipments made up 67.3% or nearly $4.0 trillion of the $6.0 trillion in total value of manufacturing shipments (4). The worldwide B2B e-commerce value is $10.6 trillion, which is almost quadruple that of the B2C e-commerce value of $2.8 trillion (1). This number has increased in the last few years, particularly when COVID-19 pushed many businesses to adopt digital selling models, and is only expected to continue on a path of rapid growth. Many manufacturers predict a 25% increase in online sales over the next two years (5).
Implement Business Planning Technology to Maximize E-Commerce Investments
While there are limitless opportunities within the e-commerce space, small and midsize manufacturers have been slow to adopt digital selling models. More than one-third of American small businesses do not have a website (3). The transition to e-commerce can sometimes be complicated and costly, since manufacturers now must take on the responsibilities of shipping, website optimization, sales, payment methods, and more. Luckily, integrated business technology can help manufacturers maximize their e-commerce investments by providing up-to-date product information, customer insights, real-time order statuses, optimized logistic routes, and more. Full visibility into inventory, current and previous customer orders, and production processes help teams streamline their fulfillment models and provide customers with accurate product information and availability.
Finance Leaders Strike Gold with E-Commerce Technologies
The e-commerce market provides boundless opportunities for modern-day companies. To truly excel in the digital marketplace and maximize e-commerce investments, finance leaders at small and midsize manufacturers need to invest in cutting edge technology to transition to digital selling models quickly and easily, without incurring significant costs. Enterprise Resource Planning (ERP) technology integrates your e-commerce, accounting, and production processes, providing the required visibility to “strike gold” in the e-commerce marketplace.