Episode 3 of 10 – Why e-Commerce is a pain for brands
A lot of manufacturers have not had a strategic approach when starting to sell their products to online retailers.
Today, these manufacturers in trouble:
- They see market prices of their products falling.
- They face high price competition on the internet.
- They have to deal with sales channel conflicts and unhappy customers in traditional sales channels.
- Their pricing and conditions structure does not work anymore.
- They have increasing margin pressure on all levels.
How can you get out of this trap?
- Prioritize your sales channels and focus.
- Pro-actively manage selected e-commerce customers.
- Implement a performance-based pricing and conditions structure to incentivize the right customers.
- Switch to an international view on key account management.
- Upgrade the structure of your sales organization and add new skills (analytics, marketing, logistics, …).
Do you also have a love/hate relationship with your sales channel E-COMMERCE? And how do you ensure that it is more love than hate?