Impact of E-Commerce Sales on Profitability and Revenue. The Case of the Manufacturing Industry

Abstract

E-commerce has grown significantly in recent years. Although the factors that contribute to the implementation of e-commerce have been studied in prior literature, little has been done about the impact that the introduction of e-commerce has on both profitability and revenue. This is important because, as Solow (1987) points out, the information technology expenditures do not always allow firms to achieve a better performance. For this purpose, the authors use the data from the Spanish Survey on Business Strategies (ESEE). The research covers an eight-year period (2008-2015). 2,544 Spanish companies belonging to the manufacturing sector were analysed. Results show that neither business-to-business (B2B) nor business-to-consumers (B2C) e-commerce seem to have influence on the revenue growth. Therefore, a substitution effect may exist between the sales by physical channels and e-commerce sales. However, the authors have found evidence that companies which adopt a high level of e-commerce (B2C and B2C simultaneously) immediately experience increase in their profitability. Moreover, if firms adopt only B2B or B2C the positive effects on profitability are achieved in the year subsequent to that of the measurement of the e-commerce status.

Analysis of E-Commerce Adoption Factors by Micro, Small, and Medium Enterprise, and Its Effect on Operating Revenue

“…Based on the results of the study, it can be seen that hypothesis 4 is rejected, or the increase in operating income is not influenced by the MSMEs' e-commerce adoption. This result supports Lorca et al (2019) which states that e-commerce types of B2B, B2C, or a combination of the two have no effect on income and there is no evidence of an increase in income when compared to companies that do not use e-commerce. This is because there is a possible substitution effect between physical sales and online sales, or most companies do not fully utilize the potential of e-commerce.…”

“…Saridakis et al (2018) states that three types of ecommerce development, namely website owned by entrepreneurs themselves, thirdparty websites, and social media, increase the possibility of an increase in SME income. While Lorca et al (2019) state that e-commerce , both B2B and B2C types, has no effect on increasing revenue.…”

Digitalization in B2B marketing: omnichannel management from a PLS-SEM approach

“…Once the construct that may seem most decisive in omnichannel management has been established, the indicators that form it have a direct impact on the company's performance. Thus, sales through digital and traditional channels have an influence on profitability and revenue (Lorca et al, 2019). Although there is some research that qualifies the impact depending on the type of client and product (Bang et al, 2013;Pauwels et al, 2011), or even that a manufacturer's aggregate performance is worse (Chen and Ku, 2013), all of them collect the impact of the channels on performance, so this research establishes the following hypothesis to be confirmed by the model: H4.…”

“…Research into the implementation of e-commerce can therefore be considered relevant for omnichannel research. Although these are papers that focus more on multichannel research than omnichannel management, there are some in the B2B field that deal with the effects of the adoption of digital channels on traditional physical channels and the company’s general performance, and these studies are relevant (Bakri et al , 2010; Leek and Christodoulides, 2011; Lorca et al , 2019; Mudambi, 2002; Rajamma et al , 2011; Yuan et al , 2021). Table 1 below gathers the most relevant papers in B2B by area of interest according to the most recent literature review (Herhausen et al , 2020; Kittur et al , 2021; Pandey et al , 2020).…”

Pengaruh Promosi Dan Kualitas Produk Terhadap Volume Penjualan Pada Industri Alumunium Bukittinggi

“…(Alt & Craig, 2016).Penjualan memegang peranan penting bagi perusahaan agar produk yang dihasilkan oleh perusahaan dapat terjual dan memberikan penghasilan bagi perusahaan. Penjualan yang dilakukan sebagai sumber pendapatan untuk menutup semua ongkos guna memperoleh laba (Lorca et al, 2019).Kegiatan penjualan merupakansuatu kegiatan memasarkan produknya baik berupa barang atau jasa dengan tujuan untuk mencapai laba maksimum bagi perusahaan (Simanjuntak & Tjandrawinata, 2011).Menurut (Dixon & Tanner Jr, 2012), penjualan merupakan kegiatan yang dilakukan antara dua orang lebih dalam mewujudkan pertukaran ekonomi dalam konteks penciptaan nilai-nilai. Menurut Amiri, penjualan merupakan kegiatan untuk memenuhi keinginan antara produksi dan konsumen dalam menambah nilai (Amiri et al, 2020).Dengan demikian berdasarkan ahli diatas, dapat diartikan penjualan merupakan kegiatan yang dilakukan oleh dua orang lebih atau perusahaan dalam mencapai tujuan dan keinginan dalam memenuhi maksud tujuan tertentu dalam menambah nilai-nilai tertentu.…”