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Importance of ECommerce for Manufacturers

With the recent increase in use of mobile devices in Thailand, Thai customers are looking at ways to shop online. We already see major Thai merchants such Tesco Lotus or Tops Supermarket successfully selling online.

We have found that the initial challenges of developing a quality eCommerce profit center for manufacturers often compels companies to lower their expectations, treating the online profit center as a sideline to their business. In some instances, companies resort to hiring a relative or recent graduate to build what should be a significant strategic initiative for their business. This is obviously a wrong approach as there are millions of potential customers online in Thailand and abroad ready and willing to buy your products.

What are the major challenges in Thailand with eCommerce?

  • Poor quality of website design and errors are common on many major sites
  • Payment gateways often do not work, issues with foreign credit cards for example
  • Issues of scam, customers get cheated, goods do not get delivered.

Possible solution

  • Hire professional IT company with high development standards, such as DNN Direct
  • Use worldwide known trusted payment gateway such as Paypal. Paypal has unique way to verify their customers.
  • Paypal will also arbitrate in case of conflict and they have buyer insurance for customers

Recommended eCommerce solution

We have looked at many different ECommerce systems and we can recommend Joomla CMS plus VirtueMart component. The advantages are:

  • Joomla is one of the most popular CMS systems in the world, easy to learn and use
  • Joomla has plenty of resources available (learning materials, forums, developers, additional software plugins extending core functionality etc)
  • Joomla has many good looking templates, so you do not need to hire professional designers. 
  • Joomla and VirtueMart components are open source and free to use

Importance of Social Media to market your Ecommerce site

Social media is a major channel to find your potential customers online and to communicate with the existing ones. You can promote your brand/product and get instant feedback and validation. The major social networks you should focus on are:

  • Facebook
  • Twitter
  • Google +
  • Youtube
  • Instagram
  • LinkedIn
  • Pinterest

Facebook Example

Today, Facebook is the largest networking website and is a source of thousands of potential customers for almost every type of online business. It’s a huge platform, so building reputation on Facebook means a lot to every online business. The important thing is that most of the users of Facebook are young. You can see from the diagram below the age classification of Facebook users.

Now, when most of the people on Facebook are young, they’re very much interested in checking out new offers, completing surveys and buying stuff and ordering the products ‘online’ because young people REALLY LOVE doing ‘online’ shopping.

A Successful Fan Page Can Bring:

  • Regular
  • Laser Targeted
  • Highly interested
  • Easily convertible visitors to your website who will BUY & RECOMMEND YOUR PRODUCT!

From a survey of 50,000 Facebook users it was found that people on Facebook are interested in almost every type of product which sells online:

– Make money online products (82% people on Facebook are interested)
– Music and Games (91% people on Facebook are interested)
– Stop Hair Fall products, (34% people on Facebook are interested)
– Perfumes, Fashion & Artificial Jewellery (86% people on Facebook are interested)
– Facebook Scripts (44% people on Facebook are interested)
– Dating and relationship (77% people on Facebook are interested)
– Real Estate (17% people on Facebook are interested)
– Weight Loss (80% people on Facebook are interested)
– Completing surveys for free stuff (56% people on Facebook are interested)

It shows that Facebook is a great source of potential customers for many online businesses and is definitely a game changer in online marketing. 

How to Post on Facebook – Ask Questions That Get Responses

  • On Facebook people always move fast
  • Ask short questions
  • Create Questions that mirror/mimic their behavior
  • Think of Questions that get responses
  • Think of what kind of Response You want
  • When You respond to a post, do it Short. Easy and Entertaining, maybe with a question
  • Let the Fan get the spotlight

About the Author:

  • Over 30 years of IT experience, 15 yrs working for Fortune 500 companies in NYC area. 
  • Rafal has worked with business leaders such as Mike Mann.
  • Rafal manages a team of highly motivated individuals to deliver IT solutions in Thailand. DNN partners with manufacturers to deliver Ecommerce solutions based on revenue share model (low investment Ativan 1mg, vested interests). For more info and free consultation please contact us

Your eCommerce partner

  • Software Development Company – helping companies to succeed in Thailand for almost 4 years as BOI approved, New York office
  • Major clients – Agoda, Colliers International, People Serve Asia, Myanmar KMA Group, 212 Serviced Apartments, Food Republic, JP Morgan Chase
  • Team of highly skilled professionals

About the Founder Rafal Furdzik

  • Bring superior IT expertise and standards. 
  • 15 years of work experience for Fortune 500 companies in New York City (JP Morgan Chase, multinational large lawfirms, College Board etc.)
  • Over 25 years of IT experience, founder of several successful .com’s. BS degree in computer science
  • Serious entrepreneur who understand business side, worked with business leaders such as Mike Mann (


  • eCommerce is growing rapidly in SE Asia and Thailand. For example 1 in 10 of Thai Facebook users is shopping online
  • There are thousands of manufacturing companies in SE Asia, many of which do not have a direct-to-consumer Internet sales channel which would enable new market penetration or know how to leverage new marketing tools such as social media and mobile marketing
  • This is a function of their core competency as a manufacturing entity. In most cases they do not have the skills to effectively market direct-to-consumer online with social media and mobile, for example. 
  • Manufacturers need additional source of income in highly competitive market
  • Manufacturers need access to new markets
  • Profit margin in online retail is much higher than wholesale. Direct sales is highly profitable

Possible Solutions

Manufacturers have three clear choices:

  1. Build the website and marketing expertise in-house.
  2. Hire one or more agencies.
  3. Put off their entry into an area which will be increasingly critical for their success.

Creating this channel takes significant time, expertise, and investment, with no guarantee of

DNN Direct – Solution

  • e offer a solution which was conceived and developed from the ground up to help manufacturers leverage social media and mobile channels side by side with their direct-to-consumer eCommerce platform
  • We offer an unequaled opportunity to the manufacturing industry to rapidly scale in order to reach new customers and to conduct business efficiently online, all at the lowest upfront investment and with the lowest associated risk.
  • Our team of eCommerce veterans, experienced in social and mobile marketing, develop and market these eCommerce websites utilizing industry best practices.
  • DNN Direct works on a revenue share basis. This aligns our goals with that of the manufacturer’s goal of building a highly successful online business, increasing the probability of success by a magnitude of order.
  • We invest in Future growth

Our Clients

  • Three supplier partner sites were developed in the first year of operations. 
  • We are expanding our capabilities such that in 2014 we project having teams in place to be able to launch new partner sites at the rate of approximately 35 per month (400 per year). Each account would be managed by a DNN Direct engagement team managing 5-10 operating sites, grouped strategically

Our Clients – Successes

  • – started selling online already, valuable access to Malaysian market
  • – website is live, marketing stage
  • – sold revenue shares back to the customer, sucessfull exit strategy

Our Marketing Targets

We focus on companies:

  • That are non-commodity producers
  • With a minimum of $1MM online revenue potential in the initial 18 months of engagement
  • That have > 50% gross margin

Our Business Model

  • Our business model is structured with a great deal of transparency. 
  • When we engage with a new client, we charge a modest upfront engagement fee and or take equity in the venture. 
  • We also collect a percentage of the sites revenues to fund ongoing site operations and marketing, and provide for an operating profit.
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