If you let potential ROI determine how much you’ll invest in your website and how you’ll measure its success, you’re going about it all wrong and you will not succeed.
To many distributors, e-commerce and e-business sound interchangeable. Yet, there are important differences in the definitions.
Customers and prospects may learn about, shop for and buy products from your company in a variety of ways—online searches, website visits, interaction with salespeople and more.
The distributor is no stranger to coming upon crossroads throughout their business’s life span. For the most part, these forks in the road are clearly marked by the elements that created them – developments in technology, new entrants to the market, or advancements in the products they market, to name just a few.
Nearly 45 percent of distributors’ customers we surveyed want the ability to request a chat with a customer service rep online (see Exhibit 1). We expect that number to grow as chat becomes more common and Millennials gain increased purchasing responsibility. Even now, many customers are more comfortable communicating via chat than on the phone…
Shopping happens before the transaction; it includes finding, researching and selecting a product, but not buying or purchasing the product. Make no mistake: It is important to be easy to order from. But a customer’s shopping experience is a distributor’s real opportunity to differentiate.
We have talked to many distributors who are still determining whether to offer an e-commerce store front or not. We hear common themes in the reasons for not pursuing e-commerce.
When shopping (finding, researching, and evaluating products), three methods are most frequently used including performing online search, going to a manufacturer website, and going to a distributor website. These electronic shopping methods were preferred over shopping by talking to people (sales reps, CSR’s, colleagues) or using print.
The type of products sold online have a factor, with MRO products generally having higher online adoption. However, the biggest and most important factor for a successful e-commerce adoption – and growth velocity – is having a strong strategic plan for the digital sales channel.
Research from the previously published annual 2015 State of E-Commerce Study indicates that more than 41 percent of distributors are generating less than 5 percent of revenue through e-commerce.