Effects Of E-commerce On Manufacturer/Retailer Relations

Manufacturer Retailer Relations

Each day, we see that our habits are turning into a digital platform. From social interactions to our shopping habits, each part of our lives is based upon the changes of internet every day. This change draws attention to a bigger picture when it comes to economy. Sales, trends, strategies, businesses and management issues are turning another page for digitalization.

This change towards digital world is also taking interest when it comes to sales in general. E-commerce is taking a bigger piece of pie of success. And in this forecast, people would like to analyze and know the assets of e-commerce. Manufacturer and retailer assets of the e-commerce can bring great deal of difference to the game. And the relation between manufacturer and retailer can be crucial in this sense.

Manufacturer RetaileWith digitalization, manufacturers found a direct way to reach their end-customers through direct sales channels like ‘online stores’. Nowadays, manufacturers are competing with themselves. This is why it is important to understand where their retailers are standing in price game. Pricing can be crucial part of an online shopping habit. Providing a prover pricing with no excessive differences can present a stable image for manufacturers. And right now, manufacturers can monitor their prices for themselves and for their retailers to keep this stable image of theirs alive.

With this change, retailers are now in a worry regarding profits of their sales. Since because manufacturers are having a better kind of understanding and control over pricing points of their e-catalogue, retailers should be more careful with their pricing points. MSRP and MAP terms are taking their importance to another level for this special kind of e-commerce relation between manufacturers and retailers.

There is another change when it comes to digitalizing process. Manufacturers are able to grow their information regarding their customers. Before e-commerce, the information of customers and their trends along with tendencies were extremely limited for manufacturers. The main reason for that was, understanding end-customers was the forte of retailers. However, with e-commerce and online sales options, manufacturers can directly see the differences and tendencies regarding their end-customers.

Another way that changed the relation between manufacturer and retailer is about monitoring. Accessing data is more prominent asset of the e-commerce right now. For this reason, having information regarding sales, customers and e-catalogues can be extremely important for manufacturers. Since data access is more open to manufacturers, supervision is a great change for them. Manufacturers can monitor and supervise the MSRP implementations of their retailers. Manufacturers can also monitor their competitor’s prices as well. Manufacturers can analyze the trends, changes and tendencies of the product in general which can bring them the importance of monitoring their competitors as well.

Since because manufacturers are having more control over the sales of their products, they should keep themselves updated with related information each day. To have that kind of a power and control over pricing points, retailer supervision and competitor monitoring, they must use an advanced Pricing Intelligence Tool as PriceRest.

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