Steel e-commerce: challenges, threats and chances.

Why E-Commerce is Essential for Metals and Engineering Businesses in 2025

On 28 October 2024, Peter Comerford held the keynote speech at the "Future Steel" event for the Polska Unia Dystrybutorów Stali (PUDS) . The talk explored how e-commerce is reshaping the metals, manufacturing, and engineering sectors, highlighting key strategies and examples for businesses aiming to thrive in the digital age.

E-Commerce: An Industry Shift

E-commerce has revolutionised industries by enabling businesses to meet evolving customer expectations. Research shows that 67% of B2B buyers now prefer self-service platforms over traditional sales interactions (McKinsey, 2023). In the metals and engineering sectors, e-commerce offers a unique opportunity to bridge operational efficiencies with customer convenience.

Even basic platforms can yield results if aligned with customer needs. For example, during the global e-commerce boom, companies that adopted digital solutions achieved up to 30% higher sales conversion rates compared to traditional models (Statista, 2024).

Practical E-Commerce Models for Metals and Manufacturing

Businesses in the metals and engineering sectors can consider several successful e-commerce approaches:

1. Quote-Only Systems Quote-based systems allow customers to browse and build enquiry baskets while businesses retain flexibility in pricing. This mitigates price-shopping risks while addressing customer needs outside of traditional hours.
2. Simple E-Commerce Platforms Companies like Flocon Valves & Fittings exemplify the power of basic platforms. By listing over 9,000 items through Shopify, Flocon transformed its online store into a lead magnet. Many small orders from previously unknown local businesses converted into long-term customer relationships.
3. Hybrid Platforms and Portals Larger players such as Vallourec have adopted hybrid systems that combine traditional sales channels with online functionality. Vallorec’s platform integrates certification tools, invoicing, and purchasing, enabling them to capture multi-million-pound orders globally while maintaining existing client relationships. Vallourec's platform unexpectedly generated seven-figure orders almost immediately after its launch, exceeding initial expectations. This highlights the potential for e-commerce platforms to drive substantial revenue even in their early stages.
4. A New Zealand Case Study: The Metal Company A standout example is The Metal Company in New Zealand. With a focus on high-quality technical data, optimised SEO, and customer-focused design, they have achieved exponential online growth. Their strategy includes offering detailed product information and leveraging video content to build trust and credibility. As a result, The Metal Company consistently ranks highly for niche terms like “stainless steel expansion bellows,” driving substantial inbound traffic.

The Power of Data in Metals E-Commerce

E-commerce platforms not only drive sales but also capture valuable customer data. This data can be analysed to identify buying trends, segment audiences, and personalise marketing campaigns. “The ability to turn small order enquiries into long-term accounts is a game changer for businesses,” said a recent McKinsey report.

Data-driven strategies increase sales productivity by up to 25%, enabling businesses to better understand customer preferences and improve operational decision-making (McKinsey, 2023).

The Future of Metals E-Commerce: AI and Chatbots

AI-driven tools are set to revolutionise e-commerce. Chatbots, for instance, can offer personalised interactions, acting as virtual sales representatives to guide customers through their purchasing journey. A recent survey found that “70% of B2B buyers expect companies to offer AI-driven customer support by 2025” (Gartner, 2024).

Overcoming Barriers and Embracing Change

While price transparency remains a common concern, businesses can overcome this by leveraging the data collected through online platforms. By focusing on lead generation and customer engagement, companies can transform challenges into opportunities.

Start small, adapt, and scale. E-commerce doesn’t require perfection at the outset. Incremental progress can unlock significant opportunities.

The Time for E-Commerce is Now

The metals, manufacturing, and engineering sectors have yet to fully embrace e-commerce, but the potential is undeniable. Success lies in meeting customer needs, leveraging data, and staying ahead of technological trends. The future of the industry isn’t just in warehouses—it’s online.

If you want to learn more about e-commerce in the metals industry, check out the article in The Metal Magazine. It provides valuable insights into how businesses can adapt and succeed in the digital age.

References:

• Forrester. (2023). How B2B buyers are reshaping sales models.
• Gartner. (2024). The Role of AI in B2B E-Commerce Growth.
• HubSpot. (2023). SEO strategies for long-tail keywords.
• McKinsey & Company. (2023). The Future of B2B E-Commerce.
• Statista. (2024). E-Commerce Worldwide - Statistics & Facts.

Selected speakers at the event:

Peter Comerford - Co-Founder at Comton Group Limited

Elina Aalto - Head of Digital Commerce at SSAB

Clifford Ondara - Co-Founder & Managing Director at Vanilla Steel

Piotr Sikorski - Head Manager Polska Unia Dystrybutorów Stali (PUDS)