6/22/21

According to a New Study from Vorys eControl, 77% of Brand Manufacturers Say Their Online Marketplaces Are Growing Faster than Their Traditional Wholesale Business

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87% of brand manufacturers cite gray market sales as a problem for online marketplaces; bolstering DTC sales and using eControl can protect brands

As brand manufacturers develop their digital sales, the first “State of Brand Manufacturers” study released today by Vorys eControl and Forrester found that online marketplaces have become a significant part of those digital strategies. Among 140 brand manufacturer decision makers surveyed, an average of 27% of their sales are now digital, including online marketplaces, direct to consumer (DTC), and wholesale dot-com.

Brand decision makers tell us that an average of 36% of their digital sales happen specifically on online marketplaces. Over three-quarters also say that marketplace sales are growing faster than their traditional wholesale business, and 62% say the same of their DTC sales. Fully 87% say they have found value in being present on online marketplaces.

However, they also note that marketplaces pose several business challenges. The study found that brand manufacturers are concerned about managing online marketplaces in terms of:

To address these challenges and take control of their marketplace identities, brands can use some of the following tools and approaches:

“Our survey results show that brand manufacturers need to take proactive steps to grow and develop all of their digital sales,” said Forrester VP, Principal Analyst Sucharita Kodali. “Implementing smart digital strategies – including investing in DTC, internal and external governance, and innovative marketplace control approaches – helps brand manufacturers reap sales, acquire customers, and protect their brand.” 

“In order to be successful, brands often have no choice but to sell their products on online marketplaces. However, when moving from storefronts into online marketplaces brand managers must build new skills and find the right partners to ensure continued control over their business,” said Whitney Gibson, leader of Vorys eControl.  “Our survey results outline the successful strategies that many brands have used to tackle the challenges posed by online marketplaces.”  

To learn more about how to address these challenges, download the full report here.

About the survey:
In early 2021, Forrester, in partnership with Vorys eControl, conducted a survey of brand manufacturer executives about their digital commerce strategies. The survey included questions about their focus on direct-to-consumer sales, wholesale dot-com relationships, and online marketplaces. Responses were received from 140 decision makers at organizations across Asia Pacific, EMEA, Latin America, and North America.

About Vorys eControl:
Vorys eControl – a division of Vorys, Sater, Seymour and Pease LLP – provides integrated solutions to help brands control the sale of their products in the age of eCommerce. We have represented more than 500 brands, including many of the world’s largest companies. Vorys eControl leaders regularly speak across the country educating companies and service providers regarding innovative solutions to the challenges brands face in today’s market. Vorys eControl’s full scope of data, technology and professional services allows us to provide a truly comprehensive approach that delivers unique business value. To learn more, visit vorysecontrol.com.