Internet Retailer – E-Retailers/B2B E-Commerce – Selling online raises profits for B2B companies, study says
When executives at 278 companies including manufacturers and distributors were surveyed about their online sales and financial performance, those that conducted sales online through their own and other companies’ e-commerce sites reported profit margins four percentage points higher—17.7% versus 13.3%—compared with companies not selling online.
Profits were higher among the 61% of companies that were selling online, and PBIT’s were highest among those that sell through more than one online channel. Companies that sell through their own e-commerce site or through an online shopping portal, such as eBay.com or Amazon.com, had an average PBIT of 14.9%. But the average PBIT for those that sold through both their own site and a third-party site shot up to 17.7%.
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I don’t think there’s any doubt that the profitability is higher through B2B eCommerce. The larger questions are: how to get this done, and how to resolve channel conflict.
See on www.internetretailer.com