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.
B-to-B purchasing is experiencing a major shift toward a multichannel model with an online focus. Online firms, such as Amazon, have elevated our expectation of how a transaction is completed.
Distributors tend to be experts in products and the market niches they serve. We often see distributors being very good at several aspects of the business. If there is a weakness (from another superhero, think kryptonite), it’s that marketing may not be a priority. Is marketing the kryptonite of your business?
Companies typically start with small customers, grow some of them into large customers, continue to add new small customers and learn a lot from serving all of them.
Over the last 20 years, there has been a broad movement by distributors to make operational improvements such as supply chain management, process standardization, lean production, and others. These practices, though not universally deployed among distributors, have created tangible efficiencies that manifest at the bottom line. While there is still more benefit to be realized…
Ask the best private equity investors, or for that matter, any acquiring company such as chains, vertical convergers or platform investors – even independent distribution acquirers – and they will tell you that human capital – leadership and management – is a key factor to consider in any investment opportunity.
Although e-commerce initiatives are front and center for many distributors today, in-store revenue remains essential. Yet most distributors with walk-in trade place limited emphasis on in-store marketing and merchandising.
Everybody knows that it is easier to sell to existing customers than it is to acquire new customers. A good segmentation of your markets is one of the keys to successful new customer acquisition.
Good product data is crucial for any successful distributor catalog or e-commerce website. This includes accurate and complete specifications of products as well as clean photos, related items, and substitute products.