After decades of competing to win orders from brands, and then having to operate on razor thin margins, it's not surprising that manufacturers would be eyeing new sales channels.The surge in ecommerce has not gone unnoticed. How difficult is it to manufacture products similar to those we are making for the brands and retailers who are our customers and then sell them on Amazon or Alibaba.Proof of concept is in the hundreds of thousands of Chinese manufacturers who have mastered the art of selling on Amazon. From garments to gadgets, factories have been successfully selling to consumers in the U.S., but increasingly in other markets as well.More Manufacturers Try DTCNow thousands of sellers from Pakistan joined the Amazon marketplace just one year after Amazon opened it to merchants from Pakistan. That’s more sellers than from India, Vietnam, the United Kingdom, or Canada. China is the No. 1 international seller on Amazon, with around 200,000 Chinese sellers currently selling their products through Amazon. In second place is newcomer Pakistan and then the UK. Only nine countries - Canada, UK, India, Japan, Australia, Vietnam, Thailand, South Korea, and Ukraine - have more than 10,000 sellers on Amazon.com.China is the No. 1 international seller on Amazon, with around 200,000 Chinese sellers currently selling their products through Amazon. In second place is newcomer Pakistan and then the UK. Pakistan’s sellers were able to join the platform when in 2021 Amazon opened the doors to sellers from more countries, according to Marketplace Pulse research.Previously Amazon banned sellers from many nations from the platform due to unreliability of the quality of the goods being sold and whether goods orders would actually be delivered to consumers.While many Pakistani sellers are simply dropshipping for U.S. sellers, this could drive $23 billion in Pakistan exports. Over time, more sellers will offer their own products directly to consumers, said Marketplace Pulse.With its strong home textile and apparel industries, Pakistan’s manufacturers who can master selling on Amazon could find a pathway not only to sales, but also to profits.Selling bedsheets and towels online is easy and will continue to offer Pakistani sellers a huge opportunity. Apparel is a lot more challenging since finding the right fit typically results in a high level of merchandise returns. For sellers, being able to budget for the cost of returns is essential. Further, if the marketplaces decides to drop or even temporarily suspend the brand, then the seller could end up with a lot of stock, but limited available distribution channels. Where It Gets ComplicatedWhile manufacturers know how to make the products, most don’t have skills in selling directly to consumers (DTC).This involves understanding how to market a product on a very competitive marketplace, how to manage inventory within the context of a DTC model where you are selling one piece at a time, and how to budget for return merchandise.This where the potentially hefty margins that come from selling direct to consumers on a marketplace can disappear or worse, turn into a loss.Platforms like Amazon or Tmall pride themselves on being consumer centric. The very liberal return policy is a huge win for shoppers, but a potential disaster for sellers.“You need to be able to take multiple hits to survive ecommerce in China. The customer is always right – even the bad ones – and you are always guilty until proven innocent,” said Josh Gardner, CEO and co-founder of Kung Fu Data.The risks to sellers on China’s biggest marketplaces range from bad reviews (which consumers take very seriously) to fraudulent orders that can result in stock outs that can lead to a brand being suspended from trading or fined.This is a big risk for many fashion items, especially ones where the fit or even color could trigger a return. For brands or manufacturers who have unsold stock, eBay could be the perfect channel for selling it. For sellers, being able to budget for the cost of returns is essential.Also, if one of these marketplaces decides to drop or even temporarily suspend the brand, then the seller could end up with a lot of stock, but limited distribution channels available.In 2021 Amazon claimed a severe violation of Amazon’s terms of service that has led to the decision to freeze accounts of over 50,000 Chinese sellers. The 50,000 affected accounts were estimated to have caused a 100 billion yuan ($14 billion) loss for the industry according to the Shenzhen Cross-Border E-Commerce Association. In essence, improper use of review functions is considered to be the overarching cause of Amazon’s crackdown on Chinese sellers, according to Daxue Consulting.“Although a rebound of Chinese sellers can already be observed, it remains questionable to what extent Chinese manufacturing giants will return to using Amazon as their main distribution channel. Rather, it seems likely that Chinese manufacturers switch (back) to Chinese e-commerce platforms. “This is currently also encouraged by the Chinese government as Chinese sellers currently count on governmental support to establish new possibilities to sell their products. Currently, Shenzhen is offering cross-border e-commerce merchants a subsidy of 2 million yuan, which should encourage them to identify alternative channels to compensate for the damage caused by Amazon. The initiative also aims at boosting manufacturers to set up their own online stores independent of Amazon, said Daxue Consulting.Other Channels, Other OpportunitiesOne often overlooked marketplace is eBay.Years after it evolved into a platform for selling inventoried goods, it still retains its legacy image as an auction site for reselling products. In fact, most items (approx. 85%) sold on eBay in 2021 were new items sold by brands, not individuals.eBay is the world’s fifth-largest marketplace, growing at an average rate of 16.9% year on year, with a global gross merchandise volume of $100 billion (second after Amazon). And, as of last count, it has 185 million active buyers annually, making it the second most visited platform worldwide. What sets eBay apart is that they are your partner in business, not your competition. Unlike other online platforms, they will not make a private label product that competes with yours. All of their energy is focused on helping their sellers sell. Their team is continually working on new ways to improve the way their customers do business, according to Kathy Terrill, an acknowledged eBay superseller with a 15 years track record selling on the platform.She points out that eBay can help brands scale using its international trade tools, such as global shipping that lets them sell without worrying about things such as customs, shipping, or international tax laws. eBay’s fulfillment services can take care of all of that for sellers. eBay also offers tools specifically designed for wholesalers, allowing them to modify prices based on volume and to sell multiple quantities of products. Just as brands and retailers realized the benefits of having multiple channels of distribution, so too are manufacturers. Clearing Excess StockFor brands or manufacturers who have unsold stock, eBay could be the perfect channel for selling it. The massive reach that the platform offers puts products in front of consumers that brands might not be reaching through their own online stores.Brands also can open their own stores on eBay, helping to support their brand image and build more of a connection with customers. This is aided by eBay’s ability to let sellers tag people who’ve shopped in their eBay stores and let them know when new merchandise has arrived.Their seller tools and packages are tailored to businesses of all sizes and for different stages of growth. This offers sellers the flexibility to customize their eBay presence to suit their business needs.Looking AheadMost manufacturers have enough to manage without having to tackle ecommerce as well.However just as brands and retailers realized the benefits of having multiple channels of distribution, so too are manufacturers.Testing the waters, either utilizing their own staff or working with an ecommerce consultant or agency, might be a worthwhile long term investment.The emphasis is on ‘long term’ since building any kind of business takes time. However exploring alternative opportunities for sales and distribution could be what keeps many manufacturers in business - and makes them more competitive.