An E-Commerce Sales Model for Manufacturing Companies:: A Conceptual Framework and a European Example

Abstract

The Internet offers manufacturers a new way to market their products and interact with end-consumers. For the first time, manufacturers can, through the Internet, dis-intermediate traditional players in the distribution chain and in addition to selling products, provide services to online customers. This paper analyses three aspects of B-2-C (Business-to-Consumer) e-commerce from a manufacturer’s perspective. First, it presents the manufacturer’s traditional value chain and how the Internet permeates its activities. Second, it proposes an e-commerce sales model for manufacturers and discusses related business and management issues. Third, it illustrates through an actual example how Ducati, an Italian motorcycle manufacturer, successfully used the proposed e-commerce business model to sell exclusively on the Internet its new motorcycle model as well as complementary products and services. Lessons learned from this innovative marketing and sales approach are presented and concluding remarks offered.