3D Printing in the E-Commerce Industry
3D printing seems like a technological wonder from a science fiction movie. It’s interesting how we realized the potential of technology to create detailed and accurate three-dimensional objects from digital 3D models.
3D printing technology can be used for everything from product development prototypes, architectural modeling, and medical procedures, to fashion design. The industry is expected to grow at a staggering speed of between 18% and 27%. It would be naive to assume this won’t impact the industries that are currently flourishing in the market such as eCommerce.
As 3D technologies are becoming mainstream, it is essential to measure the impact they will have on industries like eCommerce. So the question remains, will 3D printing disrupt the eCommerce industry as a whole? To find an answer, let’s take a look at some of the ways 3D printing is influencing the eCommerce industry.
1. Lower Production Costs
We know what you’re thinking. A 3D printer is expensive. How does it really make a difference of manufacturing something in a manufacturing unit and sell it online as compared to manufacturing from a 3D printer?
If you look at the larger picture, there is considerably less material used in 3D printing than in a manufacturing unit. After the initial investment, the production costs naturally come down and production is less expensive than when producing it in a traditional way.
The conventional manufacturing method is subtractive, meaning they produce more material waste. 3D printing is resource-efficient, especially when there is a need to use high-value materials. For an eCommerce website that has its own manufacturing, it could mean saving thousands of dollars in raw materials, and product design and development.
For online stores, it also makes it possible to have a cost-effective alternative to manufacture and sell products in small batches. This holds true, especially for small and medium-sized online stores. Production volumes in manufacturing units are immensely resulting in highly expensive production tooling. It becomes very expensive to produce small quantities with techniques like injection moulding.
2. Superior Prototyping
Obtaining a prototype for your product is no easy task. The phase can be tricky for existing and new online sellers. To opt for a prototype the traditional way, you have to do more than come up with a visual representation. You need to have a version that works and showcases its ability to progress into development.
To set up your store and get it running, you need numerous prototype versions where you’ll have to draw up plans and take it further into production which consumes time and money. With 3D printing, you can save those financial reserves by creating a prototype on your time. It might be time-consuming, but it will eventually lead to less rework and the overall process of obtaining the prototype will be faster from start to finish.
You can use 3D modeling software like SelfCAD to prepare your 3D models and even prepare them for 3D printing in the program without having to switch to another different software. The program is easy to use, and you don’t need to have previous experience in 3D designing to use it. The program also has an in-built slicer that users can use to generate the G-code that they can send to their 3D printer.
3. New Design Opportunities
eCommerce is a saturated market. With numerous online stores catering to a range of products, it’s difficult for a new entrant to start an online business as there are hardly any distinctive features. One of the few ways to gain a competitive edge is through product design. 3D printing technology doesn’t just bring disruption in product manufacturing but also in product design which can give online stores an edge over competitors.
3D printing enables product designers to experiment with complex designs and geometries that aren’t possible with other manufacturing methods. Since the rules of injection moulding no longer apply to manufacturing, even individuals with no manufacturing can produce more exotic and efficient geometries.
3D printing uses CAD software that shorten the design-to-manufacture cycle. For example, users can quickly come up new ideas in 3D designing software like SelfCAD, and they can make as many corrections as possible to the program.
For companies that look far ahead, this is another way for them to maintain their innovation in products whilst also saving costs. It also saves labour costs associated with assembly work and inventory.
4. Operational Flexibility
Back-end operations in eCommerce comprise taking orders, checking for inventory, notifying the warehouse, and starting with the order fulfilment process. In a perfect world, this process works smoothly without any bottlenecks and customers get timely delivery and are exhilarated with the online store. To achieve this level of seamless back-end operation, partnering with an experienced ecommerce development company in New York can be extremely beneficial. Top NYC ecommerce developers have the technical skills to build customized platforms that integrate inventory, ordering, fulfillment and more into optimized workflows. With the right ecommerce development company in New York, you can actualize your vision of a world-class online shopping experience.
However, that’s hardly the case. Owing to a lengthy production process that involves numerous entities, the supply chain is bound to experience some hassles before the product is safely delivered to the customers. Unless you’ve mastered the art of building an error-free supply chain, chances are, a faulty production line may cease production which can cause delays. Or a replacement part is taking days if not weeks, leading to delays in deliveries.
Dealing with all these issues consumes time and compromises other activities that require attention. You won’t face these issues with a 3D printer. It is less likely to break down and also easy to replace a faulty component. The moment you get the design, you can simply start taking orders without worrying too much about the manufacturing. It improves operational efficiency since there are fewer parties involved, there is enhanced speed, and reduces overhead costs.
5. Streamlines Supply Chain
An efficient order fulfilment process in eCommerce is a difficult fleet to achieve. You need to have strong trust in your suppliers and logistics providers that carry out the task of timely delivering your products to your customers. A miss on their end means keeping your customer satisfaction at stake.
A traditional supply chain is not really known by its responsiveness. 3D printing can prove to be a lucrative order fulfilment tool since it enhances responsiveness in the supply chain.
3D printing is not an isolated manufacturing process. It is an end-to-end production method in itself. It improves the lead time by reducing the manufacturing duration and cutting expenses related to overseas shipping. This helps online stores to increase their production to meet the market demand and increase deliveries to end customers.
Since the eCommerce industry is also undergoing a shift where customers are demanding on-demand deliveries, a 3D printing facility can just be the solution to meet the high customer expectations. It facilitates on-demand production with the flexibility of offering greater levels of personalisation for finished or almost-finished goods.
For example, a smartphone cover with a customised design. The order fulfilment process becomes highly flexible and responsive, providing you with a competitive advantage.
6. Expansion of Manufacturing as a Service
3D printing has opened up new avenues for manufacturing in ecommerce. It facilitates manufacturing to be more digital and introduced new service-based models for manufacturers in the eCommerce industry. One such model is Manufacturing as a Service (MaaS), founded on the concept of sharing manufacturing infrastructure. The equipment and other manufacturing capacity are networked to enable more efficient production.
MaaS is becoming an increasingly popular manufacturing technique because of the rise of digital manufacturing. Companies are demonstrating how 3D printing can become sharable in manufacturing since it’s more efficient.
For example, imagine an electronics e-manufacturing company that offers remote 3D printing services to companies that need ancillary parts for laptops and other electronics products. An online platform that connects manufacturers with clients can utilise 3D printing capacity and geographical proximity to the client. 3D printing manufacturing allows eCommerce companies to get faster prototyping, quicker time-to-market and the ability to personalise short runs of products.
3D printing allows parts to be produced from a digital file, making most of its work data-driven and digitised which is crucial for MaaS businesses. It also allows more flexibility and makes it possible for eCommerce companies to produce in one-offs and small batches which most MaaS companies strive for.
Potential Threats
With all these disruptions, you must be wondering, isn’t 3D printing the biggest threat to eCommerce since customers can get a 3D printer at home and simply print what they want instead of placing orders online?
The answer is yes. The number of products that customers can print at home is substantially increasing and will continue to do so in the future. It’s very much possible which is why many consider 3D printing a threat to not just eCommerce but also logistics companies that are involved in the eCommerce supply chain. Since major parties are excluded from the sales process, the entire eCommerce industry can suffer and have a negative impact on the economy.
But, on the bright side, 3D printers aren’t yet able to match the quality and details that traditional manufacturing methods provide. 3D printing still cannot match the excellent finishes that many customers seek.
Conclusion
With any new technology, one wonders what disruptions it will be to existing industries. And while it’s natural to consider the threats associated with 3D printing on eCommerce, it is also crucial to consider the implications it will have in personalisation and creating customised products.
If used rightly, it can reduce the overhead cost for eCommerce businesses since there is no need for storage of the products. In any case, there will always be benefits and disadvantages to the wide use of 3D printing. As 3D printing technology evolves, eCommerce will have to come up with innovative selling techniques that sustain them in the online marketplace.
Author bio
Nicholas Woodward, the Country Manager at PACK & SEND, a leading and respected brand in eCommerce, logistics, and freight delivery solutions. With over 15 years of experience in the logistics, eCommerce, retail, and franchise industries. Nicholas has thought leadership and expertise across strategic planning, leadership, eCommerce, B2C logistics, and organizational performance & growth. Connect with Nicholas on LinkedIn.
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