Obviously, eCommerce has changed the way that the average customer shops for anything and everything. Since purchases no longer restricted by what can be found at local retailers, many customers choose to cut out the middleman, buying directly from a manufacturer’s online store. But for manufacturers that sell both directly to customers and through offline retailers, this can create a slippery slope. Many manufacturers are left wondering how to best serve their customers and avoid competing with retailers selling their product. In the end, however, how do these direct sales affect the manufacturer’s relationship to offline retailers?

According to the New York Times, they don’t. Or at least, not significantly. Much of the time, manufacturers sell their products directly to customers with no discount, instead of at the wholesale price offered to retailers. As a result, customers encounter the same price while shopping with the manufacturer or a retailer, offering no real price incentives for buying direct. However, the manufacturer’s ability to sell a product that may be hard-to-find or have been rejected by retailers allows them to serve niche markets and increase customer convenience, bringing in extra revenue. Also, manufacturers that have high demand for their product but difficulty getting it onto shelves can operate successfully with a smaller retail presence offline. The article notes,

Manufacturers have realized that they can sell more aggressively to consumers online, which puts them in stronger financial positions and also allows them to serve consumers more effectively. And retailers are not balking too much at manufacturers who sell online because, analysts said, Web sales are not high enough for retailers to fear that a vendor will steal a lot of business.

With sales online growing larger and larger every day, will there come a time when retailers start to feel the pinch? What do you think? Tell us your theory in the comments.