Manufacturers and distributors are increasingly recognizing that time is of the essence when it comes to enhancing their digital presence. The global B2B eCommerce market is accelerating, projected to grow to an astounding $20.9 trillion by 2027. For manufacturers and distributors that hesitate, this fast-expanding market could become a missed opportunity. Whether you sell to dealers, direct to customers, or both, your partners expect seamless access to product information, pricing, availability, and ordering—all with the click of a button.
As we move into 2025, the demographic shift in the industrial buying process is also critical. With an aging generation of buyers retiring, the new generation of decision-makers—Millennials and Gen Z—are reshaping B2B purchasing habits. Two-thirds of these new buyers prefer to avoid interaction with sales representatives when making purchases, underscoring the importance of a robust self-service eCommerce channel for dealers and customers alike.
So, it’s clear that eCommerce should remain a priority for manufacturers and distributors in 2025 and beyond. But what does it take to ensure your eCommerce project reaches its full potential? If you don’t carefully budget for all factors, your digital channel may not perform as expected. To build a successful eCommerce platform, you need a solid foundation. Here are five essential items to account for in your 2025 eCommerce budget:
1. People
An experienced eCommerce leader with a cross-functional team of dedicated resources is crucial to avoiding common pitfalls. This team will be responsible for requirements gathering, vendor evaluation, launch, and the adoption of your new website. The success of your eCommerce platform depends on the strength of this team. Don’t overlook the benefit of partnering with third-party agencies—they bring the expertise and speed needed to launch your project faster and with fewer risks.
2. Technology
When evaluating vendor solutions, make sure to budget for both one-time costs (often capitalizable) and ongoing expenses. One-time costs could include deployment, integration with other business systems (ERP, DMS, CRM, PIM, etc.), and custom development. Ongoing expenses will include hosting, subscription fees, and licenses for keeping the site up and running.
3. Product Data
Investing in high-quality product data is crucial. Budget for the resources and time required to develop detailed product specifications, keyword-rich descriptions, organized categorization, and high-quality images. A smart strategy is to focus initially on the top 20% of products that drive 80% of your revenue and tackle the next 20% post-launch. You can also repurpose engineering 2D and 3D assets to provide enhanced digital images and models, enabling easier product identification for buyers.
4. Fulfillment
When planning your eCommerce strategy, don’t forget to evaluate your inventory and warehousing needs. Product availability and speed of delivery can significantly impact conversion rates. If your eCommerce platform is initially designed to support your existing distribution channel, fulfillment processes may not require immediate change. However, if you plan to alter your channel strategy or move into direct sales, consider the impact on fulfillment and plan accordingly.
5. Marketing
Your eCommerce platform won’t thrive on its own. It’s not a “set it and forget it” situation. To drive traffic and sales, you need ongoing marketing efforts. Email marketing, social media promotion, paid advertising, and SEO strategies are just a few of the marketing activities you should continuously invest in. By 2025, personalization and omnichannel marketing will play an even bigger role in driving online sales, so be sure to budget for these advanced tactics to stay ahead of the competition.
Building a successful online business is a marathon, not a sprint. As you budget for eCommerce in 2025, remember to plan for the long haul, ensuring both your short-term and long-term strategies are adequately funded.
If you’re looking for an experienced partner to help you plan your eCommerce budget, please contact us. We would be happy to review your eCommerce needs and support you with your budgeting process.