AI, Tech, & Digital Commerce

Increasingly, we hear distributors say that their e-commerce site is not getting the revenue traction they expected. The distributor went into the initiative thinking, “Build it and they will come.”

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.

In the research we performed with over 3500 customers of distributors, we learned that three methods for purchasing (email, web, phone) were significantly more frequently used than other methods including in store, at job site, mobile, EDI, punchout, text, and fax.

Only 4 percent of respondents to the joint MDM-Distribution Strategy Group annual marketing survey said they are extremely satisfied with the results of their marketing initiatives.

Going to a distributor website to find what to buy is more popular than talking to a sales rep, customer service rep, or looking at print material. In fact, shopping at a distributor website is significantly more popular than these other approaches.

This article examines the results of the 2016 State of E-Commerce in Distribution Survey and how the industry’s e-commerce offerings are maturing.

Results for the 2016 state of distributor e-commerce survey

Results from the 2015 distributor marketing survey

Opportunities remain for distributors to improve marketing plans and measurement as a means to increase marketing effectiveness. The 2015 distributor marketing survey covered several areas of marketing, including biggest marketing challenge, vehicles, channels, measurement and pricing.