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WDs Gain Advantages
When Brands Sell Online
Consumers
in the 21st Century
Current research shows that when consumers decide to shop online, they
generally look to the brand website of the product they want first for
information, product selection, authenticity, service and support. Consumers
are frustrated when they are directed to “dealer locators”
or diverted to third party eTailers that require additional steps and
searches to purchase and may or may not have the product they want. Traditionally,
brands have been unable to sell online because of the conflict it creates
with their channel partners. Nevertheless, consumer demand for a direct
relationship with brand and the ability to buy from them are pressuring
brands to sell online. They do not want to alienate their channel, especially
WDs because of their extremely important value.
Manufacturers
Need WDs
Brand manufacturers need WDs and other valuable channel partners to work
in synergy and create success, since most of their business will always
be carried out through brick-and-mortar locations. WDs promotion, stocking
ability, support of goods, as well as their relationship with Dealers,
is too vital to disregard. With the advent of eCommerce and the evolution
of consumer shopping trends, it is important for brands to embrace business
methods that satisfy the customer as well as their channel.
How
does Reshare make this work?
Reshare’s patented Distribution Relationship Management® (DRM)
software and strategy enables a brand to sell directly online to the Dealer
or end consumer and ensures that all channel partners are paid for those
sales. During checkout at the brand website, the consumer chooses their
preferred Dealer to receive credit for the sale. The WD that the chosen
Dealer normally purchases from for that brand is also credit for the sale.
By replicating the offline channel revenue flow in the online transaction,
DRM resolves channel conflict and provides channel partners with significant
advantages.
Your
Advantages
WDs and Dealers of a brand using Reshare’s DRM will realize the
following advantages:
Revenue
From Online Sales
Forrester Research predicts that online sales in the automotive aftermarket
will grow at 15% through 2010, when it will make up 11% of all retail
purchases.
Lower
risk on new products
Manufacturers often want their WDs to carry new products, which may or
may not sell. DRM provides the ability to sell those new products without
WDs or Dealers stocking them initially. As the manufacturer sells their
new products online and strengthens the evidence of the new product’s
marketability, WDs can bring products into their inventory as the demand
builds.
Build
a trusting, cooperative relationship with the manufacturer
In some cases, the relationship between the manufacturer and the WD can
be tenuous or uncertain. DRM provides a solution where all parties benefit
and are motivated to collectively serve Dealers and consumers in the manner
they expect.
Obtain
frequent and accurate reporting of online activity
DRM provides accurate, timely, and customized reporting of the online
transactions/purchases. WDs can view this information as often as needed.
The data can formatted for download/upload and/or online viewing any way
you want. Access to reports is password protected and different levels
of visibility can be pre-determined, allowing location managers to view
critical data but limit the information that others in their organization
have access to.
WDs
sales rep compensation
WDs may allocate commissions to their sales reps for revenue associated
with territories and/or accounts. DRM easily assigns and distributes the
associated commission structure for Internet sales on the manufacturer’s
web site. When the customer selects their preferred Dealer, the WDs territory
sales manager will get his/her sales commission, just as they would have
offline.
Order
24/7/365 While Improving Order Accuracy
DRM enables WDs and Dealers to order from the manufacturer just like the
consumer 24/7/365 making ordering more convenient and accurate. DRM allows
WDs to order their products under the existing pricing and purchase structure.
This eliminates the risk of hand or visual order errors. Some industries
have seen cost reductions of as much as 72% and order error reductions
by as much as 18% as a result. With the manufacturer’s entire product
line available 24/7/365, you can order when it is most convenient, rather
than during your own busy operating hours.
Dealer
Order System
Individual Dealer orders are costly and time consuming to everyone. They
often involve products Dealers do not regularly stock with SKUs that are
not in their POS system. When a customer enters a Dealer and places a
special order, it is often placed utilizing incomplete data from catalogs
and pricelists. That order must go through a variety of systems. Fulfillment
of the order is often cumbersome. Orders are frequently lost, incorrect,
or do not get to the store and/or customer they are intended for. The
invoicing and payment of special orders are also cumbersome and inefficient.
Brands utilizing DRM enhances and streamlines this process. The order
can be placed at the Brand’s eCommerce site, shipped directly to
the customer’s desired location and the WD and Dealer will receive
retail credit based on the brand business rules already established. This
process changes special orders from a potential customer dissatisfaction
to a competitive advantage and source of superior customer service.
What’s
next?
The Internet is an increasingly popular shopping destination. Online shopping
is currently experiencing the fastest growth of any retail channel. The
increasing number of shopping trips by consumers to the Internet highlight
the importance of participating in online commerce. You must meet the
consumer where they want to shop and DRM allows you to do this through
the most trafficked location, the brand’s website. This will not
only result in more profitability but also lead to better relationships
with your brands and your customers.
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