Best Source for B2B Industry Trends, News and Updates
There is an old saying: “If you want your eggs, go to the hen, not the fox.” This is probably more relevant today than at any other time in history. Here, the manufacturer is the hen that produces the goods. Retailer is the User or Seller. Middle-Men: is the fox that takes a cut and eats the profits along the way.
The traditional business model is that manufacturers or factories sell to third-party wholesalers, retailers, distributors, and middlemen, who, in turn, sell to retailers. It’s a long chain, and manufacturers benefit from economies of scale as they produce their products in large volumes. The benefit of this traditional supply chain is that manufacturers don’t have to worry about marketing, packaging, and branding; these tasks are handled by middlemen.
The traditional model has some serious downsides, including the unnecessarily rising cost of products, a significant difference between the manufacturing price and retail price that neither the manufacturer nor the retailer enjoys, and the high price is eventually passed to the end user, with the middlemen enjoying all the profits. This is not a rational business model, as the true players are not receiving the deserved returns, while the intermediaries are eating up all the profits. Small manufacturing units and factories don’t remain competitive because they don’t really enjoy ‘Economies of Scale’.
Now the modern and sensible approach is B2B (Business-to-Business) in the truest sense, where the long, pointless chain of wholesalers is removed. The key benefit of this approach is that there are no intermediaries, with manufacturers and retailers directly connected, bypassing traditional distribution channels and minimizing inefficiencies. Eliminating unnecessary players in the supply chain means manufacturers retain more profit per sale.
The transition from the industrial age to the digital age, or information age, brought immense benefits to manufacturers, as they could directly connect with reliable retailers, as many B2B Portals worldwide emerged in a few decades. In the abundance of water, the fool is thirsty. There are so many opportunities available on B2B platforms, and you can directly contact retailers without going through unnecessary middlemen (wholesalers and retailers). The B2B Platforms act as a bridge between manufacturers and retailers.
Perhaps one of the oldest B2B platforms, it's natural that it has the largest supplier base. It's certainly a prestige to be listed as a Verified Custom Manufacturer on Alibaba, since it’s the mark of manufacturers' capabilities to provide dedicated production lines that meet quality, delivery, and after-sales standards.
Buyers who prefer to deal with a Verified Custom Manufacturer, since they know they can offer high specialization and customization.
Alibaba allows you to effectively bypass intermediaries and establish high-volume B2B relationships.
This is the manufacturer's direct, which enables factories to offer more competitive pricing while retaining higher profit margins.
Another distinct advantage for manufacturers on Alibaba is Customization (OEM/ODM).
Contrary to trading companies, which often resell fixed inventory, manufacturers have a multitude of options at their disposal, including made-to-order services, prototypes, and private labeling, which is another way to earn enormous profits.
Alibaba doesn’t charge a percentage on each sale but rather operates on a membership model, which is the best approach for high-value wholesale transactions.
Alibaba enables manufacturers to undergo on-site inspection by 3rd party institutions like SGS or TUV that certify production capacity, quality control, and facilities. The Verified Supplier badge is a mark of credibility, as it builds buyers' trust and eventually improves search ranking.
Last but not least, manufacturers can gain access to RFQ, where they can proactively bid on orders from buyers that have clearly specified their needs.
This is one of the most preferred platforms for manufacturers due to its global reach and visibility, and its distinct H2H (Human-to-Human) business Model.
This platform provides access to a massive foreign network of retailers who are specifically seeking direct factory sources.
Its unique ISM (International Sales Manager) model for its premium members clearly gives it an edge over other B2B Platforms, as it's more beneficial in the age of AI (Artificial Intelligence), when more and more businesses seek actual advisors with flesh and bones rather than Bots.
Here, ISM will help manufacturers directly connect with suppliers worldwide. This is ultimately beneficial for both the factory and retailers, enabling them to maximize profits and even charge lower prices to end users, thereby retaining maximum market share.
What's best about TradeWheel is that it offers multi-channel marketing solutions to maximize reach and eventually conversions.
Manufacturers have a key weakness and a primary flaw: they have manufacturing capabilities but don’t have the ability to sell their products directly. They absolutely have no sense of packaging, branding, or marketing their products.
First things first, manufacturers need a website to display their products. TradeWheel develops a stand-alone, Permanent Website Optimized for PC, PAD, and mobile phone viewing and searches.
TradeWheel recognizes and fully supports factories in gaining visibility and exposure through SEO to achieve higher rankings with only white-hat SEO techniques for sustainable results, as well as offering Social Media Marketing on Facebook and Instagram.
Most manufacturers offer branding services, as it makes them appear more legitimate in the eyes of retailers. TradeWheel transforms a factory with machinery and manufacturing units into a powerful brand that provides competitive differentiation, nurtures customer loyalty, and builds long-term relationships.
If you are a factory with transparent operations, have an effective Quality Management System in place, and have valid documents to show to inspectors on-site, then Made-in-China is the ideal B2B E-Commerce Portal for you. Here you would be listening amongst the prestigious Industry-leading Audited Factory, and you can clearly stand out by mentioning Verified by TÜV Rheinland or Verified by BV.
This ensures that you have gone under the stringent verification process, including on-site inspection of the production site, production lines, factory size, machinery and tools to verify engineering and manufacturing capabilities. It also verifies export capabilities, experience in foreign trade, the number of workers, and R&D capabilities.
It is one of the best B2B portals. What makes it far superior to the rest of the B2B is its equal emphasis on online sourcing and exhibitions, as it is an internationally recognized multichannel Online-to-Offline (O2O) sourcing platform that facilitates global trade.
Ensure that you are listed as a ‘Verified Manufacturer’ on Global Sources; that is, your credentials have been verified by 3rd-party agencies.
Global Sources Match Service is another top service where buyers usually upload their details and specify their requirements, and they are connected with verified suppliers that meet their exact needs. This is a perfect matchmaking platform where buyers can meet online and offline, with Global Sources offering unique On-site Business Matching and Private Group Meetings. The Global Sources team will arrange a face-to-face meeting between suppliers and buyers in a private room.
Global Sources also offers TradeShow assistance in Hong Kong, Indonesia, Vietnam, the Kingdom of Saudi Arabia, and China.
It's a good opportunity for consumer goods manufacturers at trade shows to present their innovative products, whether in mobile electronics, home decor, smart home, security and appliances, fashion and lifestyle, home and Kitchen, or sports and outdoor.
At TradeShows, you can grab the deal by showing product samples, and showing on-site factory certifications, negotiate and give your final offer, hence closing the deal then and there. This is the best option for you to secure high-volume orders.
It is a North American Platform that primarily supports industrial manufacturers, evolving from a simple printed directory in 1898 into a data-driven digital platform for B2B Industrial sourcing.
Here, the basics are that you will create your manufacturer profile on Thomas, as you do on other typical B2B Platforms, by your company name, logo, and details, including a detailed company description. They can showcase products with your catalog. Another useful feature is its ‘SupplierAnalytics Dashboard’ for reviewing buyer intent data and insights, which is helpful for decision-making.
A detailed factory tour video, showing the assembly line and processes in action, will help manufacturers stand out from the crowd. They offer a paid video advertising program, where Thomas uses their own specialized equipment, including a drone, to professionally record manufacturer facilities. Thomas also helps manufacturers create a video script aligned with their specific goals.
This is especially valuable, as potential retailers can clearly understand the offering, as not everyone has the time, inclination, and budget to travel and check the assembly line in person.
For additional exposure, manufacturers can upload videos on YouTube and publish them on their website. Videos will even support your SEO efforts to achieve a higher ranking on SERPs (Search Engine Result Pages)
When it comes to SEO, Thomas offers services as a Google Certified Partner, delivering strong organic results to achieve a Google Page 1 ranking.
As you have probably realized by now, Thomas offers full-fledged digital marketing services, including display ads on Category Search Pages and strategically positioned ads alongside other company profiles.
Thomas also offers Retargeting Ads (Remarketing Services) that display Thomas profile or website to visitors who did not complete the purchase process. Thomas understands that these are high-value prospects with already deep interest, and these retargeting ads serve as a reminder with a clear call to action and a special offer or discount.
When you are driving a car and need to reach your destination, you may have to drive faster, but it’s sometimes a good idea to check that your e-brake might still not be released, which is causing you to eventually slow down. In your supply chain model, there must be roadblocks or chokepoints, such as intermediaries, and you are unnecessarily giving them a large share of your pie. Therefore, it is a good idea for manufacturers to directly connect with retailers and bypass middlemen.
