Breaking the cannibalization myth: How manufacturers use D2C platforms to empower distributors
Traditionally, B2B commerce relied heavily on distributors to connect manufacturers with end customers.
However, the ongoing digital transformation in the industry is encouraging many companies to adopt direct-to-consumer (D2C) platforms to enhance their supply chains.
While D2C has often been perceived as bypassing intermediaries, modern D2C platforms offer a new perspective.
This article explores how manufacturers can leverage D2C platforms to strengthen distributor relationships while driving greater efficiency and growth across the supply chain.
The evolving triad of B2B commerce
The B2B commerce ecosystem has long operated through a carefully balanced network of manufacturers, distributors and customers.
Each stakeholder brought unique value: manufacturers focused on production efficiency, distributors provided market access and logistics expertise and customers relied on this established chain for their procurement needs.
A fragmented ecosystem
Today, distribution networks remain highly fragmented — meaning that the path from manufacturer to end customer is often split among multiple distributors and intermediaries, each with their own systems, processes and customer touchpoints.
For B2B buyers, this fragmentation makes the purchasing journey complex and inconsistent:
Lack of centralization: Buyers often need to visit multiple distributor websites or contact several sales reps just to compare product availability, pricing and delivery estimates.
Inconsistent information: Product details, pricing and availability can vary greatly across channels, leading to confusion and mistrust.
Inconsistent experience: The brand experience is diluted because each distributor manages customer interactions differently — purchase, support and after-sales processes are rarely unified.
Slow and friction-filled purchasing process: Manual quoting, order processing delays and multiple steps to find and purchase products can frustrate buyers, causing lost sales or customers turning to competitors with smoother online experiences.
The digital shift
All of these issues result in a poor and fragmented brand experience for the buyer, making it difficult for manufacturers to build loyalty, gather meaningful customer insights and present a consistent brand image.
Even in markets with structured distribution networks and strong manufacturer brands, buyers face inefficiency.
When they visit a manufacturer’s “where-to-buy” website, they often find detailed catalogs but are simply redirected to distributor contacts — forcing them to start the purchasing process all over again.
This disconnect creates unnecessary friction and highlights the urgent need for a more seamless, integrated B2B buying experience.
Two key trends are supporting this shift from “where-to-buy” to direct-to-consumer (D2C) models:
Digital transformation: With B2B buyers increasingly seeking online purchasing options, Gartner reports that 83% of them now prefer digital commerce over traditional channels.
Customer expectations: Today’s B2B customers expect greater transparency, personalization and faster service, prompting manufacturers to deliver a seamless customer journey.
To stay competitive, manufacturers and distributors must go beyond traditional sales and embrace a digital-first approach that meets today's buying journey expectations.
Modern D2C in a platform-driven economy
Modern D2C platforms enable manufacturers to onboard their distributors and dealers onto their eCommerce. Orders can be captured across all channels — including the manufacturer’s eCommerce site — and are split and routed to the appropriate distributor for fulfillment. This approach allows customers to interact directly with the manufacturer, gaining access to up-to-date product information, real-time availability and delivery estimates.
Rather than bypassing or cannibalizing distributors, modern D2C platforms enable manufacturers to drive growth while strengthening distributor relationships.
By fostering collaboration instead of competition, the platform model ensures sustainable growth for all stakeholders in the B2B landscape with a “win-win-win” situation. It’s not only a shift in strategy, but also in how businesses connect, engage and thrive in a digital-first economy.
Leading manufacturers are already seizing this growth opportunity.
For example, Toyota Material Handling digitized their aftermarket parts business by bringing their dealer network onto a unified eCommerce platform.
With Mirakl, they eliminated manual processes, enabled real-time inventory visibility and made it easy for customers to find and buy genuine parts online.
As a result, they’ve achieved a 220% year-over-year growth in online parts sales, faster fulfillment and a better experience for both dealers and customers.
What are the benefits of D2C platforms for manufacturers in B2B commerce?
For manufacturers, modern D2C platforms offer unprecedented opportunities to strengthen brand presence while supporting their distribution network.
According to a Deloitte survey, 98% of manufacturers have started their digital transformation journey, realizing benefits such as:
1. Control over branding and customer experiences
Relying solely on distributors means manufacturers often lose control over how their brand is perceived by end customers. A D2C platform allows manufacturers to directly influence their messaging, deliver consistent experiences and build trust with customers.
For example, manufacturers can create rich product pages with visually engaging imagery, videos and detailed specifications to showcase their products the way they envision.
2. Valuable customer insights
Traditional B2B models offer limited visibility into customer data. D2C platforms allow manufacturers to understand buyer behavior, preferences and purchasing patterns. Access to this data enables:
Better product innovation: Manufacturers can identify customer needs directly and develop products tailored to them.
More effective marketing: Using behavior analytics, manufacturers can personalize marketing campaigns.
3. Improved customer feedback loops
Receiving direct feedback through a D2C platform enables manufacturers to identify issues, resolve complaints faster and continually improve their offerings.
4. Increased business with distributors
When distributors boost their sales through the manufacturer’s D2C platform, their order volumes naturally rise. This increased demand means distributors purchase more inventory from manufacturers, creating a virtuous cycle of growth for both parties.
How distributors benefit from D2C platforms
Contrary to common concerns, a well-structured D2C strategy can significantly benefit distributors. Here’s how:
1. Access to a trusted and modern sales channel
Distributors become part of a manufacturer’s official digital ecosystem, gaining a new, trustworthy channel that enhances the customer experience and positions them as reliable fulfillment partners.
2. Ready-made digital storefront
Distributors gain access to a ready-made digital storefront on the manufacturer’s D2C platform, eliminating the need for their own investment in eCommerce technology.
3. Broader customer access
By integrating a manufacturer’s D2C platform, distributors can reach new B2B buyers who may not have found them through traditional channels, expanding their market reach without additional marketing spend.
4. Higher sales volume
When manufacturers actively promote their products on a D2C platform, distributors benefit directly from increased visibility and marketing efforts. As fulfillment partners, they receive a higher volume of qualified orders driven by the manufacturer’s brand reputation and digital campaigns.
Challenges and opportunities in the D2C transition
While we’ve shown the benefits of adopting a D2C platform, it isn’t without its hurdles. Here are some common challenges manufacturers face when transitioning to D2C:
Perception of channel conflicts: Concerns around competing with distributors could still prevail.
Ensuring competitive fairness: The success of the transition relies a lot on how fairly the orders are orchestrated to the distributors.
Technology integration: Implementing an advanced D2C platform can require time, resources and expertise.
These challenges can be effectively addressed and overcome to ensure a seamless adoption process:
Foster transparency: Clearly communicate the purpose of the platform to distributors and demonstrate concrete business benefits by positioning it as a sales enabler rather than a competitor. Emphasize transparent pricing strategies and establish clear territory and market segmentation to foster trust and collaboration.
Replicate offline practices and leverage automation: Ensure distribution fairness by replicating distribution offline practices and understanding buyer behaviour. Use technology to set rules and automate order orchestration — whether it's based on zipcode, price, availability, rating or delivery estimates.
Leverage scalable technology platforms: Invest in robust D2C platforms to facilitate distributors’ onboarding and integrate seamlessly with existing systems.
Embracing the future of B2B commerce
The future of B2B commerce isn’t about choosing between direct and distributor channels — it’s about creating a seamless ecosystem that harnesses the strengths of both.
By integrating distributor networks in their D2C platform, manufacturers can expand their market reach, strengthen relationships with distributors and deliver exceptional customer experiences.
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