Posts in category: Consulting

Web3 represents a new paradigm shift in how we interact with the internet. It is a movement to enable decentralized applications and data on the world wide web so that power can be shifted back to individual users from big tech giants.

What is Web3?

Web3 – also known as Web 3 or Web 3.0 – is a term used in the blockchain and cryptocurrency fields to describe a new generation of web technologies that are being developed to give decentralized control to users.

At its core, Web 3 builds on previous iterations of the internet by creating decentralized architectures that remove single points of failure or control from web platforms. Instead, users are given more power and control over their data and how it is used.

One of the most important promises of Web 3 is that it could enable true peer-to-peer applications, where individuals interact directly with each other instead of relying on intermediaries or third parties. This would help to reduce costs and deliver higher levels of privacy and security for online interactions.

The Origin Of Web3

The origins of Web 3 can be traced back several years to the development of blockchain technology, which first emerged in the early 1990s. In 2008, an anonymous person or group under the pseudonym Satoshi Nakamoto introduced a groundbreaking new cryptocurrency called Bitcoin that was built using blockchain architecture.

Since its inception, blockchain has become a highly disruptive force in many industries, including finance, supply chain management, and identity verification. As people began to understand the power of this technology, the idea of building decentralized applications on top of it naturally arose.

One important precursor to Web 3 was Ethereum, a platform for smart contracts that was launched in 2015 by Vitalik Buterin and his team. It provided developers with tools for building decentralized applications (dapps) on top of a blockchain. While Ethereum was not the first platform to offer this capability, it was the most popular and widely used one.
Ethereum’s popularity spurred the development of other platforms that were designed for specific use cases, such as EOS, Tezos, and Cardano. These projects helped to lay the foundation for what would eventually become Web 3.0.

What Web3 Means For OEMs And Dealer Networks

OEM (Original Equipment Manufacturer) and dealer networks are two of the most important channels for selling and servicing vehicles.

An OEM is a company that manufactures products or components that are then sold to another company, which assembles them into a finished product. In the automotive industry, OEMs are the companies that design, develop, and produce vehicles and their parts.

A dealer network is a group of independently owned businesses that have been authorized by an OEM to sell and service its vehicles. Dealer networks play a vital role in connecting OEMs with customers.

The rise of Web 3 could have a major impact on both OEMs and dealer networks.

Web3 – Revolutionizing The Way OEMs Work

As the automotive industry evolves, so too does the way that original equipment manufacturers (OEMs) operate. The rise of Web 3.0 is set to have a significant impact on how OEMs design, develop, and produce vehicles and their parts. Here’s a look at how Web3 can revolutionize the way OEMs work:

More Streamlined Approach

One of the key advantages of Web3 is that it provides a secure, decentralized platform for companies to interact and transact with one another. This can have significant benefits for OEMs, as it allows them to streamline their operations and eliminate many of the middlemen involved in the manufacturing and distribution process.

In addition, Web3 has the potential to transform traditional dealer networks by facilitating more direct communication between manufacturers and consumers. With access to real-time data and analytics, dealer networks will be better equipped to match customers with the right vehicles and provide them with the information they need to make informed purchase decisions.

Better Data Access And Insights

OEMs can also expect increased data access and insights from Web 3. With the ability to collect, analyze, and act on large amounts of data in real-time, Web 3 has the potential to give OEMs a much deeper understanding of their customers and products. This could enable OEMs to more effectively target marketing efforts, optimize production processes, identify new business opportunities, and more. For example, an OEM might use Web 3 technologies to gain insight into customer preferences and buying patterns, enabling them to better understand which vehicles are most popular among different types of customers.

Leverage Machine Learning And AI

Web3 also enables new tools and applications to be created on top of its blockchain infrastructure, allowing OEMs to take advantage of emerging technologies like machine learning and artificial intelligence. For example, an OEM might use Web3-enabled machine learning algorithms to instantly identify vehicle issues, or they could use an AI system to provide real-time customer support through chatbots. This gives them a competitive edge by helping them improve product design, reduce costs, and better serve their customers.

Automating Operations

Web3 could also help dealerships improve their operations by automating tasks like scheduling service appointments, processing payments, and managing inventory. This would free up time and resources that can be reinvested in other areas of the business, such as customer service and sales.

Overall, the emergence of Web 3 is likely to have a significant impact on how OEMs work in the years ahead. While it may be too early for companies to make major changes at this point, OEMs should begin thinking about what strategic opportunities and challenges may arise from this emerging technology ecosystem.

The Bottomline

Web 3 presents exciting possibilities for the future of the automotive industry. Whether you’re an OEM or dealer network, many benefits can be gained by embracing this new technology paradigm. As more companies explore ways to leverage Web 3 capabilities for competitive advantage, it’s important to stay ahead of the curve and keep your finger on the pulse of this rapidly evolving ecosystem.

At EquipmentFX, we believe in the transformative power of Web 3.0 and are committed to helping our clients leverage this emerging technology to improve their businesses. We offer a wide range of services that can help you take advantage of the opportunities presented by Web 3, including consulting, development, and marketing. We also provide access to our blockchain-based platform, which can be used to facilitate transactions between companies and consumers. Contact us today to learn more about how we can help you harness the power of Web 3 for your business!

One of the biggest innovations in recent years – blockchain technology –  has been the subject of many conferences and various discussions. First introduced in 2009 by Satoshi Nakamoto, this innovative technology has now captured the attention of banks, institutions, and financial experts worldwide.

Though the first blockchain was implemented in 2009, the technology was conceptualized way back in 1991 by a group of researchers, who wanted to introduce a computationally practical solution for time-stamping digital documents. 

What Is A Blockchain?

In simple terms, blockchain can be defined as a digital ledger that records all cryptocurrency transactions in a secure and tamper-proof manner. It is a decentralized, distributed, and public digital ledger that records all transactions in blocks. These blocks are linked using cryptography, thus making it almost impossible to change the data once recorded. 

Essentially, blockchain technology is an invention designed to solve the problem of security and trust in online transactions. Introducing a secure and tamper-proof record of every transaction has enabled people to securely exchange money or other assets over the internet without relying on any third party or central authority. 

In recent years, many banks and financial institutions have started experimenting with this innovative technology. Some experts believe that this could be the future of finance – a way for banks to settle payments faster and more efficiently, reduce costs associated with processing financial transactions, and streamline the overall operations of financial institutions. 

However, it is important to remember that blockchain technology is still in its early stages, and like all new technologies, there are both pros and cons associated with this innovation. It will be exciting to see how this technology evolves and what impact it has on various industries.

The Origin Of Blockchain

The history of blockchain dates back to 1991 when Stuart Haber and W. Scott Stornetta described a system for document timestamping using a hash tree, as part of their work on “How To Time-Stamp A Digital Document“. They wanted to create a system where documents could not be backdated or tampered with. In 1992, Haber and Stornetta added Merkle trees to the design, which improved its efficiency by allowing several documents to be collected into one block.

In 1998, Nick Szabo used the term “bit gold” to describe a decentralized digital currency. He developed a proof-of-work system called Hashcash, which was designed to be used as an anti-spam measure.

In 2000, Stefan Konst published his theory of cryptographic time-stamping and proposed a system that uses Merkle trees to store timestamps. He believed that only proof of publication would be acceptable as evidence in court.

In 2008, Satoshi Nakamoto published the whitepaper that described his new peer-to-peer electronic cash system: Bitcoin. This marked the beginning of blockchain’s current incarnation.

Then, in 2009, Satoshi Nakamoto released the first Bitcoin software and created the first block of the chain, known as the “genesis block“. This event is widely considered to be the birth of blockchain.

The original design for Bitcoin did not include a blockchain. However, Nakamoto soon realized that a decentralized ledger would be necessary to prevent double-spending. He proposed adding a timestamp server to Bitcoin and came up with a proof-of-work system called Hashcash, which was designed to be used as an anti-spam measure.

In 2014, blockchain technology was separated from Bitcoin and became a standalone technology. Today, blockchain is used to track everything from cryptocurrency transactions to medical records, smart contracts, and more.

How Does A Blockchain Work?

When most people think of blockchains, they think of Bitcoin and other cryptocurrencies. However, a blockchain is not just for cryptocurrency. A blockchain can be used for any digital asset, such as an identity, a vote, or even a house.

A blockchain is essentially a digital ledger of transactions. It is constantly growing as “completed” blocks are added to it with each new transaction. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the blockchain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

A Blockchain is distributed across many computers (or nodes) around the world, with no central server or trusted authority. Instead, transactions are verified by network participants called miners, who compete to add new blocks to the chain in return for financial rewards. This makes it difficult for any user to manipulate or corrupt the data contained within a blockchain.

One of the unique features of blockchains is that they are completely open and transparent: anyone can view them on any computer at any time. In addition, once information has been added to the blockchain, it cannot be removed or altered – offering an unprecedented level of security and trust³⁰⁸ ​(such as a birth certificate).

Current Applications Of Blockchain Technology

Ever since the origin of Blockchain, its applications have been expanding rapidly. Apart from cryptocurrencies, blockchains are now used for a wide range of other applications, including tracking digital assets, voting systems, and medical records.

Some of the most popular current applications of blockchain technology include:

• Decentralized Finance (DeFi): DeFi is a rapidly growing industry that uses blockchain technology to provide financial services that are usually provided by centralized institutions, such as banks and governments.
• Cryptocurrencies: Cryptocurrencies are digital assets that use cryptography to secure their transactions and control the creation of new units. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
• Smart Contracts: A smart contract is a self-executing contract that automatically performs the terms of an agreement between two parties. Smart contracts were first proposed by Nick Szabo in 1996.
• Supply Chain Management: Supply chain management (SCM) is the process of coordinating the flow of goods and resources from suppliers to customers. Blockchain technology can be used to track goods and resources throughout the supply chain and to ensure that they are not tampered with.
• Voting Systems: Blockchain technology can also be used for voting systems, as it allows votes to be counted fairly and transparently. This allows people to vote securely from anywhere in the world, even if they do not have a valid ID or address.
• NFTs: Non-fungible tokens (NFTs) are digital assets that have unique properties and characteristics. They can represent anything from a collectible card game to real estate ownership.

With its ability to provide security and transparency, we will likely see many more innovative uses for this revolutionary technology in the future.

The Future Of Blockchain

In recent years, many industries have started adopting blockchain to improve operational efficiency and reduce costs. Some of the biggest proponents of this new technology include financial institutions, healthcare providers, IoT companies, transportation firms, and e-commerce retailers.

Despite the potential benefits of using blockchain in these industries and others, there are still some challenges that must be overcome before it can truly go mainstream. These include concerns about security risks as well as regulatory uncertainty surrounding data privacy laws like GDPR.

Despite these challenges, many experts believe that blockchains will eventually become an integral part of our lives and economy. In fact, many believe that blockchain will lead to a “digital revolution” and fundamentally change the way we live, work, and interact with one another.

As more companies start adopting blockchain, it is clear that this technology has the potential to transform not just our financial system, but also many other aspects of our lives as well. Time will tell if these predictions come true, but for now, it seems clear that blockchains have the power to shape our future in exciting new ways.​

At EquipmentFX, we are committed to providing our customers with the best possible experience. We believe that blockchain technology has the potential to improve many industries (the equipment industry is one of them), and we are excited to be at the forefront of this new trend. We are committed to helping you grow your business and achieve your goals through the use of innovative and cutting-edge technology. To learn more about EquipmentFX services, please visit our website or contact us today!​

What Is A Platform?

A platform is a type of business model that refers to a multi-sided market. It is an online environment that creates value by connecting multiple groups of customers and stakeholders who can be creators, enablers, or consumers (or a combination thereof). 

Platform businesses are built on trust. Users must trust that the platform will remain accessible and dependable and that the other users on the platform can be trusted.

The three key components of a platform business are:

• The Core Product or Service: This is the primary value proposition that drives users to the platform. 
• The Ecosystem: This is the set of users, partners, and developers who interact with the platform and contribute to its success. 

The Value Creation Function: This is the “glue” that holds the ecosystem together, enabling each member to capture value from their interactions with other members.

Why Do Equipment OEMs And Dealers Need One?

Imagine a world where equipment OEMs and dealers had a single platform that connected them seamlessly with customers, suppliers, partners, and other stakeholders. This would give them access to valuable data about customer needs and preferences, allowing them to better tailor their products for the market. It would also facilitate collaboration among suppliers, helping them to improve efficiencies and reduce costs. It could also serve as a digital marketplace for new business opportunities.

Here are three main reasons why equipment OEMs and dealers should consider building a platform for their business:

• Ease of access and evolution
• Uniformity of experiences and tools
• Reduced implementation time and increased scalability

Ease Of Access And Evolution

A platform gives equipment OEMs and dealers a single point of access to their ecosystem, which simplifies interaction and collaboration. In addition, the platform can evolve over time to meet the changing needs of the ecosystem.

Uniformity Of Experiences And Tools

By providing a common set of experiences and tools for all members of the ecosystem, a platform can help to ensure that everyone is on the same page and using the same terminology. This can reduce confusion and misunderstanding, making it easier for everyone to work together effectively.

Reduced Implementation Time And Increased Scalability

A platform-based approach can help to reduce implementation time and costs by allowing equipment OEMs and dealers to leverage the existing infrastructure and expertise of the platform provider. In addition, a platform can be easily scaled to support a larger number of users as the ecosystem grows.

What Should Be An Ideal Platform Strategy For OEMs And Dealers?

A successful platform strategy can help equipment OEMs and dealers to achieve these benefits by facilitating the development of an ecosystem that creates greater value for all participants in the value chain. Ultimately, this can help companies to capture more revenue from each sale while ensuring long-term competitiveness in the market.

If you’re an equipment OEM or dealer looking to develop a platform strategy, there are five key considerations to keep in mind. These include:

1. Understanding Your Core Product or Service

The first step is to identify your core product or service. What value are you offering to customers that they can’t find elsewhere? This could be anything from a unique feature to a competitive pricing model. Once you’ve identified your core offering, you can begin to think about how you can use it as the foundation for a platform business.

2. Identifying Your Target Market

The next step is to identify your target market. Who are your ideal customers? What needs do they have that your products or services can address? When you have a clear understanding of your target market, you can begin to think about how you can use your platform to reach them.

3. Developing Your Ecosystem

Once you’ve identified your target market, the next step is to develop your ecosystem. This includes finding and onboarding partners who can help you to reach your target market, as well as developing the infrastructure that will enable users to interact with each other seamlessly.

4. Facilitating Value Creation

The final step is to facilitate value creation. This involves creating a system that allows users to exchange value with each other. This could be anything from a points-based rewards system to a digital marketplace for buying and selling products and services.

5. Launching Your Platform

Once you’ve developed your platform strategy, the next step is to launch it to your target market. This will involve a mix of marketing and outreach efforts, as well as continuous refinement based on user feedback.

If you’re an equipment OEM or dealer looking to develop a platform strategy that can help you to thrive in the digital economy, follow these key considerations and take the time to build a robust, scalable ecosystem. By doing so, you can create real value for your customers and stakeholders and position yourself for long-term success in the rapidly changing world of equipment manufacturing and sales.

The Three Types Of Platforms – Closed, Open, And Hybrid

OEMs and dealers have a few different options when it comes to platform types. The three main types are closed open, and hybrid.

Closed

Closed platforms are owned and operated by a single company. Apple’s App Store is an example of a closed platform. Closed platforms offer more control to the platform owner, but they can also be less flexible and may limit the ability of users to interact with each other.

Open

Open platforms are owned and operated by multiple companies. Android is an example of an open platform. Open platforms offer more flexibility to users, but they can also be less stable and may be more difficult to manage.

Hybrid

Hybrid platforms are a mix of both closed and open elements. Facebook is an example of a hybrid platform. Hybrid platforms offer the best of both worlds, with more flexibility and stability than a pure closed or open platform.

Which type of platform is right for your equipment OEM or dealer business will depend on your specific goals and needs. Consider the pros and cons of each type carefully before making a decision. Ultimately, no single platform type will be ideal in all situations – it’s important to choose the option that best aligns with your priorities and capabilities.​

Regardless of which platform type you choose, focus on creating value for your customers first and foremost. This will help ensure that your platform remains successful over time. And remember to continue refining your strategy as needed based on user feedback and changes in the market landscape – this will help keep you ahead of the competition at all times.

Marketing And Promoting Your Platform

Once your platform is up and running, it’s important to focus on marketing and promoting it to build a user base and sustain long-term success. Some key marketing and promotion tactics to consider include social media outreach, paid advertising campaigns, content creation, influencer marketing, email marketing, SEO optimization, event sponsorships, and more.

Of course, the key to effective marketing is knowing your target market inside out. As you develop your promotional strategy, take the time to understand who will be using your platform and what their needs are. Then tailor your efforts accordingly to reach these users effectively.

In conclusion, launching your platform is just the first step in creating long-term success in the digital economy. To be successful, it’s important to invest in marketing and outreach efforts that focus on building a user base and providing value to your customers. And remember, no single platform type will be ideal in all situations – it’s important to choose the option that best aligns with your priorities and capabilities.

At EquipmentFX, we can help you understand and meet your marketing goals with our proprietary A3 (Assess, Align, Activate) approach. Contact us today to learn more about how we can help you build a thriving platform that drives value for your business and customers.​

According to Similarweb, Amazon.com receives over 2.4 billion visits per month, whereas eBay receives roughly 750 million visits per month. In many nations, these two websites predominate the online shopping scene. 

PipeCandy estimates that there are currently about 12 million active eCommerce businesses worldwide (excluding China), with about 3.9 million in the US and Canada.

There are a lot of businesses vying for the user’s hard-earned money.

Over the past year, Google’s traffic and keyword counts have progressively increased due to recent algorithmic changes. However, the huge players keep pushing the small players down the search results pages. As it prepares for a world dominated by mobile devices and seeks to increase its ad revenue, Google is constantly changing how its search results appear.

What must you do then if you wish to launch an online store?

What can you do to stand out from the large, established and well financed players while remaining relevant?

The answer is simple: Position yourself in your niche market.

Positioning Entails Identifying A Niche

Positioning your brand in your ideal customer’s mind is the most important component for a long-lasting competitive advantage. 

There are two main options to influence your customers and prospects: 

a) Taking the lead in a currently active product or service category (This would need huge investments in terms of money, effort & time, and not a practical option for everyone)

OR

b) Entering any new product or service category as the first participant. In other words, you must establish a brand-new category that sets you apart from the competition.

After choosing an option from above, start small. Focus on a specific need, seek to fill it, differentiate your offering, and rule the niche market. The easier it is for the business to concentrate on and fulfill its customers’ needs, wants, and wishes, the smaller the segment. You can expand your reach into wider markets once you establish yourself as a leader in the niche industry.

Get Ready To Offer The Best Customer Service Possible

Amazon cannot provide customer service in the same manner as you. They are oversized. This is a sandbox Amazon is not allowed to enter. You can, though. One of the finest strategies for competing with Amazon is offering something that Amazon cannot. They are unable to treat each customer as an individual the way you can. Viral spreadability for your brand is possible thanks to enthusiastic brand advocates. Amazon lacks this capability. Customer service is the notion that you interact and build relationships with your clients on a personal level.

Avoid Making Client Service Difficult

All you have to do is offer personal care and be courteous. 

There is general agreement that client retention through relationships and customer service provides a higher return on investment and is more economical than other forms of marketing.

Improve Local Search Efficacy

Utilize Google Webmaster Tools or Bing Site Explorer to optimize your website. 

Google has developed a tool called “Google Search Console” that offers useful details about how users reach your website and what they do once they arrive. You can increase your position on Google and Bing’s search engine results pages by submitting a sitemap to their webmaster tools if you already have a domain with content. By uploading them, you are informing the search engines about all the information on your website so they can better crawl it, index it more quickly, place you higher in regional SERPs (Search Engine Results Pages), and lessen cross-domain duplication.

Taking Local Advantages Regionally & Nationally

Companies in regional sectors occasionally have more options than only protecting their current markets. These extenders can employ the correct transferable assets to expand abroad by building on their domestic success. A targeted foreign expansion strategy closely correlated to the business’s core assets can result in increased sales and scale advantages and priceless learning opportunities. 

The best way for extenders to use their assets is to look for analogous markets that are similar to their home base in terms of customer preferences, proximity to their home base, distribution channels, or governmental laws. To provide a straightforward example, expatriate groups are probably open to accepting domestically produced goods.

Make It Simpler And More Convenient For Your Customers To Check Out And Make A Purchase:

If you’ve ever tried to buy something from Amazon, you wouldn’t be the only one to find their checkout process frustrating. They employ an account-based checkout mechanism, in case you are unfamiliar. No purchases may be made without first registering. 37 percent of all online cart abandonments are due to customers being asked to register on the website where they were trying to make a purchase:

Why not remove this from the purchasing process for your clients and win the business that Amazon is unquestionably losing?

You might also try to:

• Permit guests to check out instead of paying customers.
• Make sure the checkout page functions properly on mobile devices.
• Ensure that your website is HTTPS.
• Activating social login (one click, instead of filling out forms)

Create, Rank, and Grow

The success of a specialized eCommerce site can be achieved in three steps, as the subtitle suggests. The first step is to build an eCommerce site or at least the foundation for a sufficiently powerful one. The second is to increase your site’s ranking, even if low, to demonstrate that you are not under any penalty and doing as planned. The final step is to develop the website from a startup into a major player that pays you thousands of dollars each month.

About EquipmentFX

Over the years, the services we offer have evolved to meet each client’s unique needs. We like to lead with our proprietary A3 assessment to really understand the gaps and opportunities. From there we can discuss follow-on services that we can customize together.

After each assessment, the two questions clients usually ask us are “Can you just do this stuff for us?” followed by “We have marketing people—how can we make them and our processes more efficient?” And sometimes we simply deliver the road map and provide support as needed.

At the end of any engagement, you will have a formal framework and internal audit process to improve your program or build a program from scratch to create more new customers and sell more to existing ones.
To find out more about the EquipmentFX A3 assessment, digital marketing, or technology consulting services, please contact us.

E-commerce has completely changed how and where people buy things and the expectations people have when making a purchase. As a result, equipment OEMs and dealers are worried about how they can compete in light of Amazon’s success and the company’s ever-increasing shipping and customer service efficiencies targeted to their same customers.

For a long time, traditional retail categories like clothes, entertainment, and home products have been the focus of competitive worries regarding Amazon’s expansion. But heavy equipment OEM’s and dealers are taking notice as the e-commerce behemoth enters new areas, such as its well-reported move into the car aftermarket parts business.

Amazon’s growth rate is still astounding. Despite supply chain bottlenecks, increased labor expenses, and the ongoing epidemic, the eCommerce behemoth is operating at full capacity. After its earnings release, the stock of this $1.4 trillion company surged by more than 14%.

Original equipment manufacturers and wholesalers alike are in a dilemma as Amazon’s expanding influence continues to reshape the face of American industry. They must decide whether to pay money to join Amazon and support visibility or fly solo and risk falling behind.

Industrial and manufacturing enterprises need to evaluate their existing e-commerce strategy if they want to thrive against Amazon and other e-commerce behemoths. While many OEM organizations lack the time and resources to give consistent, up-to-date data to a wide range of suppliers, many small- and mid-size distribution companies are unable to compete with household names like Grainger and MSC.

Manufacturers can, however, develop the differentiation required to compete with Amazon and improve financial performance and customer satisfaction by reevaluating their current business practices.

Let’s look at a few strategies that can help OEMs win against E-Commerce giants.

Strategies And Ways For OEMs To Compete With E-Commerce Giants

Robust Functionalities Can Help You Cruise That Miracle Mile

Equipment manufacturers can easily boost their organizations’ productivity with careful development and evaluation of ERP and other back-end business capabilities. OEMs need to concentrate on client services like open shipping, prompt delivery, and a user-friendly experience. The customer should be able to place orders online anytime that suits their demands.

Manufacturers AND dealers can enhance their offerings and focus on building their brands rather than merely taking orders. Ecommerce platforms also take away the chance of mistakes and lengthen order delays during busy times. Improving these functionalities can give OEMs the edge they require to tackle the challenges presented by E-Commerce giants.

Shopify is perhaps the best example of helping the small to medium sized companies compete with Amazon.  If you build a robust storefront, optimize the product pages with SEO friendly product descriptions, images and videos, you, too, can compete and win in today’s ecommerce world.

A Little More Personable, A Little More Human

Make sure your clients and staff are aware of your commitment to the process and your firm’s values. Regardless of how little or unimportant a company may appear compared to Amazon, people want to feel like their business matters.

Utilize social media as a platform to engage with customers individually, provide them with coupons for discounts, send individualized newsletters, or follow up with them after a transaction. Install custom recommendation engines that recommend other items they may consider. If nothing else, simply respond to their correspondence. In the modern era, a few minutes of human interaction may go a long way and help your company stand out from the crowd.

You don’t have to fight with the eCommerce behemoths in this market because their competition is mostly based on scale and numbers. Instead, focus on offering customers value rather than directly competing with Amazon or eBay. Whether it’s customer service, customized packaging, seasonal or local specials or special offers on new items for your most devoted consumers, compete where you have an advantage. 

By addressing the voids in their businesses, you can compete. OEMs and distributors must serve the vacuum that Amazon and other E-Commerce giants lack.

Service Parts Pricing Is In The Spotlights

It might seem obvious that maximizing revenue, earnings, and demand requires selling a service component for the best price. However, many sizable, international manufacturers still price their parts manually and with basic tools like spreadsheets. These producers must stick with archaic pricing techniques like cost-plus rather than more advanced, value-based algorithms. Manual approaches will make optimizing prices extremely harder as competition from businesses like Amazon and customer demands rise.

The best dynamic pricing is determined by combining real-time data from various sources, including customers, rivals, IoT platforms, and other legacy systems. This dynamic pricing model ensures that the end-user has a positive experience while the manufacturer increases revenue and margins. Manufacturers’ pricing requirements will change as they develop a more proactive, connected service model. 
OEMs must therefore invest in pricing solutions with adaptable architectures like cloud computing solutions that can grow and change with them as their needs do. The complexity involved in pricing service contracts and subscriptions for manufacturers in the future will be too much for manual systems to handle and the current solutions are easy to implement and use compared to even a year ago.

More Shipment Variability, Accounts For Better Size, And Increased Speed

According to the latest report on Global Equipment Aftermarket Trends from the newswire, The size of the equipment market is anticipated to increase by $3,220.15 billion from 2021 to 2022, representing a 10.3 percent compound annual growth rate (CAGR). However, with this expansion comes a new problem: the nature of shipments is becoming more unpredictable.

The majority of the time in the past, distributors received significant shipments of parts from OEMs and aftermarket vendors. The logistics of getting those parts to their destinations were managed by distributors. Repair components, however, are now playing a bigger role in your business since most equipment is kept on the road for longer periods of time. This entails more paperwork, more shipping, and increased pressure to control costs.

For distributors and dealers in significant markets, you will find and gravitate to any solution that allows you to ship easily and quickly. Today, logistics are global: service facilities, fleet and asset managers, inspectors and technicians. Thus OEMs and aftermarket suppliers also need to transport smaller quantities of parts (or hundreds of them), which takes time and money to manage.  There is a better, faster way forward today.

For example, the equipment might be down and in need of a quick fix, waiting on components to arrive. These kinds of shipments are time-sensitive. Express parcel shipments will consequently become a more vital component of your shipping operation as a result of the inherent urgency and requirement for speed.

Final Thoughts

It is no secret that e-commerce behemoths like Amazon and eBay have achieved amazing success. This is because every part of their business operations is approached strategically, and their business strategy is incredibly user-centric.

OEMs and manufacturers can implement these techniques with the correct technology, professional advice, and a little direction. All you need is the courage to adapt to new technology and a steadfast dedication to providing clients with the greatest possible e-commerce experience.

About EquipmentFX Services

The services we provide have changed throughout time to fit the specific demands of each client. To truly grasp the gaps and potential, we like to start with our in-house A3 assessment. From there, we can talk about further services that we can create together.

We frequently receive requests and queries to “simply do this stuff for us” or “we have marketing folks, how can we make them and our procedures more efficient” after assessments. And other times, all we do is present the road plan and offer assistance as required.

At the conclusion of any engagement, you will have a formal framework and internal audit procedure to use to either improve your program or design a new program from the beginning in order to acquire more new clients and increase sales to existing ones.
To find out more about the EquipmentFX A3 assessment, digital marketing, or technology consulting services, please contact us.

Today’s OEMs are seeing a shift to servitization, where companies will no longer just sell products; instead, they will offer the value of business outcomes those products deliver. This new model will encourage a shift to subscription-based business models, completely redefining how manufacturers operate and serve their customers. This change creates a major opportunity for OEMs to separate themselves from big-time e-commerce players such as Amazon, which are still set up for ad hoc repairs.

With more than 63% of all product searches starting with Amazon’s search bar, Amazon stays at the top of the eCommerce food chain. Moreover, Amazon owns almost 50% of all U.S. online retail sales. The equipment manufacturing and retail industry are no different. 

With this in mind, here are three key things heavy equipment OEMs should keep top of mind as eCommerce players potentially venture into aftermarket parts.

1. Focus On The “Next Phase Of Aftersales”

The sale of original equipment accounts for far more than merely the exchange of capital for a piece of equipment. That transaction initiates a relationship ripe with opportunity and can lead to revenues beyond the initial transaction and possible additional capital purchases from the same manufacturer. The customer-OEM relationship is just the beginning as the initial transaction or sale closes; what will happen to this relationship hugely depends upon how well an OEM cultivates it.  The old saying “the aftermarket is the before market” has never been more true when cultivating and maintaining new relationships.

Following the first sale, you will have entered the “after” of the aftermarket, and what you choose to do in that period can dramatically impact your overall business and profits. Most OEMs focus on the design and manufacturing phases of delivering product value to the customer and leave most of the service element to the dealer network. And all OEM’s and dealers know this is where the money is made and relationships cemented.  It’s a perfect time to reinvent the best possible service experience.

2. Traffic Is King In The E-Commerce World

On the surface, Amazon and other e-commerce players seem to have a considerable advantage in e-commerce. They have a significant platform to search, showcase, and sell products to customers that already have trust in them. But any technology has its limits. In such a competitive environment, the best bet is to focus on acquiring sales through traffic from search engines or optimizing through organic means your parts and SKU catalogs. This approach often leads to gaps in a successful customer Total Lifetime Value (TLV). If you buy traffic and fail your follow up systems to keep your customers “in platform”, you are missing out on the best opportunity to create new and ongoing customers. Part of any successful e-commerce strategy will include getting and keeping customers transacting in your platform, as often as possible. An ideal experience includes that same customer with a browser open to your store to get your promotional specials tailored just to them, in real time, based on their needs and search habits.

With recent advancements in commercial software and services, particularly in AI (artificial intelligence) and ML (machine learning), the technology that Amazon and other e-commerce giants have spent a fortune on is available for a fraction of the price. These new tools allow any company to incorporate these same, open source technologies to your own platform and strategy. Doing so can significantly improve your conversion rates through the original sale and recommendations, which lead to upsell and cross-sell opportunities on algorithmic autopilot when installed properly.

3. Established OEMs Need To Invest To Fly Solo

For any company to start their online retail journey, the major pain point is to form a trustworthy customer connection and increase brand loyalty. Amazon has this covered; customers simply visit the platform and are more than ready to purchase because of Amazon’s customer-centric and long history of E-commerce. Moreover, they’ve also created a platform where their branding is always in the spotlight regardless of the manufacturer’s hard work on the product. For example, any customer who buys your product from amazon will say, “I got this from Amazon,” and couldn’t care less about who the manufacturer is.

Furthermore, Amazon does nearly all the communication with customers, and sellers are prohibited from marketing to their Amazon customers. This approach is practical as it would be an annoyance for any customer to get into an email list each time they buy a product. But, this is devastating from the manufacturer’s POV; all it does is increase sales while decreasing brand awareness.

Amazon’s marketplace has created a slew of new businesses solely to sell on Amazon. For example, the FBA (fulfilled by Amazon) model allows an individual to purchase goods online from overseas, add branding and marketing and ship them directly to Amazon’s distribution centers. For these sellers, Amazon’s rein on user communication is a major component of their success. But for established OEMs, it’s just a key to brand confusion.

In such scenarios, the option to sell directly to the consumer seems like the perfect plan. This way, you have full control over your interactions with your customers, learn about them through their data and communicate directly with them. A successful approach will adopt a strategy that runs both scenarios simultaneously. But the truth stays that the better you get at D2C sales, the less you’ll need Amazon. 

Moreover, adopting a D2C strategy doesn’t mean losing precious B2B clients. On the contrary, a good strategic partnership with an IT company or hiring qualified developers can help you create a customer-centric platform that is in harmony with B2B clients. 

Once in place, your OEM eCommerce platform will become a catalyst in developing and cultivating your customer relationships and brand awareness strategies. The information and guidance presented to the customer can be tailored to their specific needs and interests based on the data specific to their equipment. Rather than going on a wild goose chase for parts, the customer will now have a safe, reliable path to ordering what they need with complete confidence through you. Providing such an environment post-sale to your customer offers them tremendous added value and ultimately will result in improved customer satisfaction and loyalty.

How Can EquipmentFX Help?

Our services have evolved throughout time to meet each client’s unique needs. 

The first step is to conduct an in-house A3 evaluation to determine where the company stands in terms of strengths and weaknesses. After that, we can discuss what other services we can provide each other.

As a result of our evaluations, we frequently receive requests and inquiries like “just do this for us” or “we have marketing people; how can we make them and our procedures more efficient?” 

There are instances when our only responsibility is to present a road map and provide support as needed.

Our experts can help you improve your business strategies or design a new one from scratch to attract more new customers and enhance sales with existing ones using the formal structure and internal audit system you receive at the end of any engagement.

Please contact us if you have any questions concerning EquipmentFX’s A3 evaluation, digital marketing services, or technological advice.