It’s important to keep a watch on what’s being produced, and what’s selling. Take a look at Ford’s numbers for January 2024. 152,617 units. And as a comparison, China manufacturer Geely produced 213,487 in January 2024.
We talk to a lot of automotive and heavy duty companies about e-commerce, and it’s certainly not for everyone. Here are the top 5 vetting questions we use to help companies decide whether B2C ecom is a good fit.
- Assess your business base and client base. Some distributors and manufacturers have sales and business pathways so ingrained into B2B that opening Pandora’s box of B2C could be a terrible fit. I’ve had distributors say they are just pleased to fulfill for other B2C entities and don’t want to touch B2C. But if the client base looks promising, and if there is any selling to customers directly, it could be a good fit. Oftentimes, a retail presence at all is a good signal that B2C could work. What a distributor does not want to do though is disrupt their B2B core business and upset their own retail customer base.
- Identify a budget for buildout and marketing spend. Builds can cost less than $100K, and some vendors out there try to sell ecom websites for less than $5K. That’s a tough one. We’ve never seen a client thrilled with their $5K ecom site, ever. Usually, costs go up depending on integrations, customizations, and licenses. Get quotes, do thorough discovery, try to know what it takes so there are no surprises. And allocate an ad spend traffic driving budget so it’s not just a build it and they will come situation.
- Are there enough internal resources to do B2C? Usually, everyone is already busy at a company. Is there the ability to hire an ecommerce manager internally? Consultants ask a lot of questions, and Sound Press has a whole process to go through to help identify these e-commerce questions, but a big set of questions is around internal resources. It is possible to bolt on a pick/pack/ship module to a Warehouse Management System to enable a B2C team to pull parts and ship.
- Know where parts data will come from. This can even be a legal land mine. Don’t hire an overseas company to screen scrape and then get sued by OE manufacturers for illegal image and data usage. Some companies have multiple sources of data going on in e-commerce. Internal is always best if you can make that happen for your organization, but not everyone has the resources to pull that off.
- Assess the costs of licenses and integrations. Often data can be quite pricey, but there are companies that license data and you can negotiate. Other integrations with ERPs and WMSs are out there, and some e-commerce backbones such as Magento/Adobe Commerce, Shopify, and others have those integrations, but it’s super helpful, and almost required to build an information system architecture to know where everything is coming from and what it all costs.
Sound Press usually takes clients through a discovery phase to map out exact planning, systems, and budgets for success. There is absolutely room for success in automotive and heavy-duty B2C, and we enjoy developing long-term partnerships with our clients to find those pathways for success and growth. We hope this is helpful, and if you want to talk about this just get in touch with us.
What Distributors Are Doing Right
The Crucial Role of Regular Manufacturer Promotions for Automotive Distributors
In the intricate web of the automotive distribution network, regular manufacturer promotions emerge as a linchpin for sustained growth and market relevance. As a distributor, aligning with manufacturers who prioritize consistent promotional activities is paramount. These promotions not only invigorate the sales pipeline but also play a pivotal role in building enduring partnerships and thriving in the competitive automotive landscape.
Regular promotions from manufacturers equip distributors with powerful tools to drive sales and capture market attention. The allure of exclusive deals, discounts, and promotional bundles not only entices end customers but also empowers distributors to present a compelling value proposition to their network of retailers.
These promotions serve as a catalyst for efficient inventory turnover. By strategically aligning with manufacturers who consistently roll out enticing offers, distributors can navigate the ebb and flow of consumer demand, ensuring that their inventory remains dynamic and responsive to market trends.
Additionally, the collaborative nature of promotions fosters a mutually beneficial relationship between manufacturers and distributors. It cultivates a shared interest in achieving mutual success, as distributors become integral partners in amplifying the reach and impact of manufacturer campaigns.
Regular manufacturer promotions are not just promotional events; they are strategic alliances that propel growth, enhance market presence, and fortify the distributor’s position in the ever-evolving automotive supply chain. Embracing and leveraging these promotions is key to accelerating growth and maintaining a competitive edge in the dynamic automotive distribution landscape.
