Wholesaler & Distributor | Digital Commerce 360 https://www.digitalcommerce360.com/industry/wholesaler-distributor/ Your source for ecommerce news, analysis and research Thu, 09 Nov 2023 21:14:33 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.2 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Wholesaler & Distributor | Digital Commerce 360 https://www.digitalcommerce360.com/industry/wholesaler-distributor/ 32 32 Manufacturers, distributors continue to focus on ecommerce https://www.digitalcommerce360.com/2023/11/07/manufacturers-distributors-continue-to-focus-on-ecommerce/ Tue, 07 Nov 2023 20:55:08 +0000 https://www.digitalcommerce360.com/?p=1311817 Ask manufacturers and distributors how they feel about current business conditions and a common answer might be: “We’ve had better years.” Through the first three quarters of 2023, the combined sales of B2B manufacturers and distributors declined to $11.010 trillion. That’s down 1.5% from $11.182 trillion in the first three quarters of 2022, based on […]

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Ask manufacturers and distributors how they feel about current business conditions and a common answer might be: “We’ve had better years.”

Through the first three quarters of 2023, the combined sales of B2B manufacturers and distributors declined to $11.010 trillion. That’s down 1.5% from $11.182 trillion in the first three quarters of 2022, based on a Digital Commerce 360 estimate using monthly B2B sales data from the U.S. Department of Commerce.

For the period January through December, manufacturer sales grew 0.3% to $5.010 trillion in 2022. At the same time, sales for business distributors and wholesalers declined 3% year over year to $5.986 trillion from $6.171 trillion.

Manufacturers, distributors examine ecommerce performance

Many distributors are seeing slowing sales from repeat customers as they scale back orders due to a softer economy. A case in point is MSC Industrial Supply Co.

MSC reached a milestone during its 2023 fiscal year ended Sept. 2, surpassing $4 billion in annual net sales for the first time. But ecommerce sales, which account for more than 60% of total sales, slid by 3% year over year in the fiscal fourth quarter. The distributor attributed the drop in digital sales mainly to public sector sales occurring in non-ecommerce channels.

But MSC, like many other B2B distributors, continues to double down on expanding digital commerce as the business markets shift to accommodate even bigger waves of digital-first customers.

“Looking forward, we expect improvement in our ecommerce sales, particularly through MSCDirect.com, as we start rolling out enhanced capabilities, including improved search and navigation functions,” said MSC chief financial officer Kirsten Actis-Grande in the company’s most recent earnings call with investors.

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How manufacturers and distributors collaborate to grow B2B digital sales https://www.digitalcommerce360.com/2023/11/03/how-manufacturers-and-distributors-collaborate-to-grow-b2b-digital-sales/ Fri, 03 Nov 2023 14:00:14 +0000 https://www.digitalcommerce360.com/?p=1311639 ARG Industrial, also known as Alaska Rubber Group, faces ongoing pressure to manage product data correctly and expeditiously with suppliers like hose fittings manufacturer Midland Industries. That pressure stems from ARG’s role as a light custom-manufacturer as well as a distributor of more than 25,000 SKUs for  industrial hoses, fittings and related products for such […]

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ARG Industrial, also known as Alaska Rubber Group, faces ongoing pressure to manage product data correctly and expeditiously with suppliers like hose fittings manufacturer Midland Industries.

The more companies that are pulling this data we’re putting into the PIM, the more chances there are for sales to increase on both sides.
Ross Baker, director of product strategy
Midland Industries

That pressure stems from ARG’s role as a light custom-manufacturer as well as a distributor of more than 25,000 SKUs for  industrial hoses, fittings and related products for such industrial uses as oil rigs and fuel-delivery trucks. Most of its business involves replacing broken industrial hoses, and ARG’s sales and product teams often work with customers to assemble customized hose products and systems.

MikePowers-ARG Industrial

Mike Powers, director, ecommerce and digital, ARG Industrial

“You have to make sure that you’re getting the right data from your suppliers, and also that you’re presenting the right data on these assemblies to your customers,” says Mike Powers, ARG’s director of ecommerce and digital. Ship a hose assembly with the wrong specifications, and the customer could experience severe problems, he adds.

ARG B2B digital commerce sales

ARG is working with the the Industrial Distributor Cooperative (IDCO) buying group and product information management (PIM) and other software from digital commerce technology vendor Unilog to expedite how it receives product data from Midland and other critical suppliers.

Ross Baker_MidlandIndustries

Ross Baker, director of product strategy, Midland Industries

“It’s the way of the future,” says Ross Baker, Midland’s director of product strategy. “The more distributors that are pulling this data we’re putting into the PIM, the more chances there are for sales to increase on both sides.”

Powers asserts that companies involved in ecommerce face challenges in pulling data from legacy enterprise resource planning systems and integrating that data with a customer-facing ecommerce site.

“They’re realizing that the complexity of integrating legacy ERP and B2B ecommerce is very, very tough,” Powers says. He adds that companies then often find it difficult to find the people with the necessary expertise to work with legacy ERP systems.”

Working with Unilog and IDCO, ARG receives more consistent and helpful product information from Midland and other suppliers.

Midland is now pushing new product updates quickly to ARG, “instead of us waiting 12 months to get a new catalog,” Powers says. “All we need to do is log in.”

Data collaboration results

He says the much-improved product data flow is producing several results, including:

  • Increased web traffic through improved keywords and search engine optimization.
  • A more useful site search tool and increased sales of newly released products.
  • ARG’s enhanced ability to develop a new configurator that lets customers who want to build their own hose assemblies to order an accurate product set.
  • ARG’s enhanced ability to provide punchout catalogs that let buyers punch out from their procurement software to an ARG product catalog.

Baker adds that Midland expects to extend the level of product data-sharing it does with ARG to more companies to foster increased revenue for both Midland and its channel partners.

The Cashing in with Digital Channel Partners report is available for a free download.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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As manufacturers go direct to B2B buyers, distributors must digitize to survive https://www.digitalcommerce360.com/2023/11/02/as-manufacturers-go-direct-to-b2b-buyers-distributors-must-digitize-to-survive/ Thu, 02 Nov 2023 19:23:49 +0000 https://www.digitalcommerce360.com/?p=1311626 The distribution industry stands at a crossroads. For decades, the familiar model of manufacturers selling to distributors who then sell to customers has been foundational across industries. But with the emergence of digital tools that empower manufacturers to deal directly with consumers, this time-honored structure has faced deepening disruption. While distribution remains essential, manufacturers can […]

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YoavKutner-Oro

Yoav Kutner

The distribution industry stands at a crossroads. For decades, the familiar model of manufacturers selling to distributors who then sell to customers has been foundational across industries. But with the emergence of digital tools that empower manufacturers to deal directly with consumers, this time-honored structure has faced deepening disruption.

Distributors must reimagine their value proposition and business models for an increasingly tech-focused world.

While distribution remains essential, manufacturers can now own the customer relationship end-to-end with little input from intermediaries. Combined with the meteoric rise of ecommerce, this direct-to-consumer revolution threatens to make distributors obsolete. Amazon and other digital juggernauts are also building formidable logistics capabilities that threaten to undermine the function of traditional distributors.

To survive in this new paradigm, distributors must take a page out of the D2C playbook and undergo their own digital transformation. They need to reimagine their value proposition and business models for an increasingly tech-focused world. Distributors that fail to adapt risk losing relevance as manufacturers bypass them to sell directly to customers online. The choice for the distribution industry is clear: digitize or die.

The threatening dawn of D2C

D2C represents an existential threat to the traditional distribution model. Manufacturers are rapidly exploring innovative sales channels that feed directly to end users, taking cues from disruptive startups like Dollar Shave Club and Casper. These digital native D2C brands have shown that enormous success can be achieved when control over pricing, customer relationships, and end-to-end experiences is kept in-house.

For manufacturers, D2C delivers a gold mine of customer data to tailor products and personalize engagement. Combined with the explosive rise of ecommerce, producers now have direct access to vast pools of customers without the need for distributor middlemen. This trend is unlikely to peter out; between 2019 and 2022, customer-direct purchases increased by almost a third, with sustained growth forecasted through the middle of the decade and beyond.

As D2C continues to gain momentum, distributors are likely to find once-reliable clients starting to question indirect sales. This is particularly true of manufacturers who’ve sunk millions of dollars into their own digital capabilities, and, as a result, are rapidly seeking higher margins by eliminating intermediary markups.

A narrow window of opportunity 

Despite this, distribution remains essential across the majority of modern industries. Distributors provide vital value through their technical expertise, expansive product selection, and customer service. But much of this value can now be replicated or replaced through technology. Even the least future-facing manufacturers are wondering whether they need third-party distributors to the extent they once did — thanks, not least, to the sudden emergence of eye-catching alternatives.

Powerful ecommerce enterprises, like Amazon and Alibaba, have surged into the packing and delivery spaces, offering services once fulfilled solely by distribution specialists. Their expertise in digital shopping and advances in logistics allow cost-effective shipping of products — including large and bulky items — neutralizing an advantage established distribution players previously enjoyed. These digital disruptors are also beginning to match distributors in terms of technical proficiency, leveraging artificial intelligence, algorithms, and data analytics to close the knowledge gap.

For traditional distribution companies, the window of opportunity to secure a sustainable future is closing fast. But it isn’t too late for these tried-and-true providers to cement themselves as essential cogs in the ecommerce machine. To remain relevant in a rapidly digitizing world, they must recognize the need for reform, casting aside antiquated models to deliver the experiences that modern-day manufacturers — and their customers — want.

An investment worth making

Moving forward, distribution leaders must strive to deliver seamless omnichannel journeys formulated to meet fast-evolving customer expectations. Siloed channels and fractured data severely degrade these experiences, so the focus should be on unified commerce solutions spanning web, mobile, and marketplaces.

Investing in flexible, customizable B2B ecommerce platforms purpose-built for the distribution space provides a strong foundation for unified commerce, empowering distributors to blend digital efficiency with high-value account management and the other areas in which they excel.

To fortify fulfillment and logistics as customer demands escalate, distributors must also optimize supply chain operations for speed, transparency, and flexibility. They can achieve these operational improvements by digitizing warehouse management, selectively applying automation, exploring innovative last-mile delivery partnerships, and closely monitoring supplier relationships. While superior fulfillment and logistics remains a distributor stronghold, digital disruptors are advancing quickly, so established disruption players must urgently double down on this advantage before it evaporates entirely.

In both the short term and the long term, those that modernize their supply chains will gain a powerful competitive edge. However, to truly thrive in the evolving distribution landscape, distributors must expand their value proposition far beyond just moving products.

Doing so requires a realization that they shouldn’t be competing with manufacturers, but rather complementing their operations. This means providing services, insights, and specialist know-how that make them the expert distributor, an indispensable partner. With knowledge and relationships baked deeply into the customer experience, manufacturers will be less incentivized to cut distributors from the chain — especially in economically uncertain times when increasing value is imperative.

Ready to thrive 

There’s no doubt that D2C is here to stay, but manufacturers will continue to seek the services of digitally enabled distributors who provide value far beyond basic order fulfillment. That’s why, to remain competitive, distribution players must augment their value proposition by evolving into trusted advisors and strategic partners.

Getting this right relies on comprehensive digital transformation encompassing ecommerce, supply chain, and service delivery operations. Distributors that fail to adapt their business models and stubbornly cling to antiquated, unsophisticated approaches will inevitably fail.

Adapting to this new distribution reality is no small task. But it has become necessary for survival — and with the right tools and technology, it can be a remarkably painless process. With commitment to change, investment in digitization, and a tireless customer focus, distributors can reinvent themselves as next-generation enterprises ready to thrive in all market conditions — now, and in the future.

Yoav Kutner is co-founder and CEO of Oro Inc., an open-source business technology company serving B2B merchants.

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MyTradeZone.com launches for B2B networking and lead generation https://www.digitalcommerce360.com/2023/11/01/mytradezone-com-launches-for-b2b-networking-and-lead-generation/ Wed, 01 Nov 2023 21:46:58 +0000 https://www.digitalcommerce360.com/?p=1311534 Bachir Kassir has spent over 20 years in the ecommerce technology industry, having founded the WebJaguar ecommerce platform before selling it to manufacturing and supply chain technology vendor QAD Inc. in late 2021. Now, Kassir’s out with MyTradeZone.com, which he founded and describes as a B2B-dedicated social network stocked with business tools for developing revenue-generating […]

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Bachir Kassir has spent over 20 years in the ecommerce technology industry, having founded the WebJaguar ecommerce platform before selling it to manufacturing and supply chain technology vendor QAD Inc. in late 2021. Now, Kassir’s out with MyTradeZone.com, which he founded and describes as a B2B-dedicated social network stocked with business tools for developing revenue-generating business relationships with trading partners.

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Bachir Kassir, founder, MyTradeZone.com

“We know that 40% of B2B marketing budgets are spent on trade shows and that over 95% of marketers use social media content in their campaigns,” he says in his promotional material, adding: “So why is there no social network specifically dedicated to B2B trade?”

That’s where MyTradeZone fills the gap in B2B commerce, he adds.

“On MyTradeZone, each business can both market its products/services and source what it needs, all within the same platform,” he says.

Kassir notes that he founded and launched the site quietly several years ago, building a base of about 50,000 users through word-of-mouth.

A toolset with CRM and email marketing

But he recently publicized MyTradeZone’s official launch in a press release and is considering taking on investment partners to spur growth. He adds that he expects the site to begin generating revenue in the first quarter of next year.

MyTradeZone.com provides built-in features ranging from site search, product listings, and online video chats to email marketing and CRM software applications to help buyers and sellers find and build business relationships with particular types of trading partners.

It offers limited access to these features at no charge under its basic membership plan. Premium plans will provide the same features and higher site search rankings for monthly fees from $20 to $50 based on the volume of activity.

In addition, the top premium plan will let participants earn fees from online ads placed on the social network site. MyTradeZone will take a cut of those ad fees.

MyTradeZone.com does not operate as a conventional ecommerce marketplace hosting product and services sales transactions among participating buyers and sellers, who complete those transactions outside the networking site. But it will let users monetize business communities, such as by setting up industry organizations and charging membership fees through the Stripe online payments system. In that case, MyTradeZone will charge a fee based on a percentage of the membership fees.

Kassir says MyTradeZone has been gaining about 100 members daily — a figure he wants to grow to about 1,000.

To get there, he says he’ll continue to invest in “lots of business tools” available to members and offer premium membership deals to trade shows, business networking groups and trade associations. He adds that while he has mostly self-funded MyTradeZone, he may consider outside investors.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Grainger grows Q3 web sales slowly but surely https://www.digitalcommerce360.com/article/grainger-sales/ Fri, 27 Oct 2023 14:00:38 +0000 https://www.digitalcommerce360.com/?post_type=article&p=1043608 The third quarter was a good one for maintenance, repair, and operations (MRO) and industrial supplies distributor W.W. Grainger Inc. But even though the company’s core ecommerce business units did well, there was some softening around the sales channel because of a slower business economy. “Within the Endless Assortment business, while we continue to see […]

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The third quarter was a good one for maintenance, repair, and operations (MRO) and industrial supplies distributor W.W. Grainger Inc.

But even though the company’s core ecommerce business units did well, there was some softening around the sales channel because of a slower business economy.



GreyBar_Articles

“Within the Endless Assortment business, while we continue to see a softer demand environment, we remain focused on acquiring new customers and improving repeat purchase rates across the segment,” CEO D.G. Macpherson told analysts on the Q3 earnings call, according to a transcript from Seeking Alpha.

Grainger operates various digital sales channels. Web-only sales in its Endless Assortment segment grew in the third quarter. Endless Assortment’s segment includes Zoro.com in the United States and Japan-based MonotaRo.com.

W. W. Grainger Inc. is No. 11 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest online retailers in North America by web sales.

W.W. Grainger sales Q3

Overall sales for the fiscal third quarter ended Sept. 30 grew to $4.288 billion. That’s up 6.7% from $3.94 billion in the third quarter of 2022. Net income was $493 million compared with $442 million in the prior year.

Endless Assortment segment grew 4.3 % in the third quarter to $732 million. That’s up from $701 million in Q3 of 2022.

The company’s High Touch business grew to $3.403 billion. That’s up 7% year over year from $3.180 billion. The business segment includes full-service sales through the company’s U.S. flagship Grainger.com, Canada-based Grainger.ca, and its sales agents.

“The High-Touch Solutions segment continues to perform well, with sales up 8.5% in daily constant currency underpinned by growth across all geographies,” says chief financial officer Dee Merriwether.

Zoro and MonotaRo

Despite the growth in sales, softer business spending is impacting growth in some digital sales channels, Grainger says.

“At the business level, while we’re seeing some signs of macro-related softness at MonotaRo, the business still drove strong growth with new and enterprise customers and remain focused on growing repeat business with its core B2B customer,” Merriwether told analysts. “At Zoro, results reflect a continuation of headwinds discussed last quarter, with tough prior-year comp decline, a noncore B2C volume and a slowing macro environment all contributing to more muted top line growth. Noncore B2C customer performance was down nearly 20% year-over-year as we continue to focus our growth efforts on stickier B2B customers.”

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s W.W. Grainger report.

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MSC Industrial surpasses $4 billion in sales https://www.digitalcommerce360.com/article/msc-industrial-ecommerce-sales/ Wed, 25 Oct 2023 17:00:33 +0000 https://www.digitalcommerce360.com/?post_type=article&p=1041773 MSC Industrial Supply Co. reached a milestone during its 2023 fiscal year ended Sept. 2, surpassing $4 billion in annual net sales for the first time, president and CEO Erik Gershwind said today. The metalworking and industrial supplies distributor said sales increased 8.6% year over year to $4.009 billion. And that happened even though MSC […]

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MSC Industrial Supply Co. reached a milestone during its 2023 fiscal year ended Sept. 2, surpassing $4 billion in annual net sales for the first time, president and CEO Erik Gershwind said today.

Looking forward, we expect improvement in our ecommerce sales.
Kirsten Actis-Grande, executive vide president and chief financial officer
MSC Industrial Supply Co.

The metalworking and industrial supplies distributor said sales increased 8.6% year over year to $4.009 billion. And that happened even though MSC Industrial ecommerce sales, which account for more than 60% of total sales, slid by 3% year over year in the fiscal fourth quarter. Gershwind attributed the drop in digital sales mainly to public sector sales occurring in non-ecommerce channels.



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Kristen Actis-Grande_MSCIndustrialSupply

Kirsten Actis-Grande, executive vice president and chief financial officer, MSC Industrial Supply Co.

MSC Industrial ecommerce sales

Full-year MSC Industrial ecommerce sales, however, rose 9.1% to $2.45 billion. Gershwind and Kirsten Actis-Grande, executive vice president and chief financial officer, said they expect to see improved ecommerce sales, especially as MSC rolls out upgrades to the company’s flagship ecommerce site, MSCDirect.com.

“Looking forward, we expect improvement in our ecommerce sales, particularly through MSCDirect.com, as we start rolling out enhanced capabilities, including improved search and navigation functions,” Actis-Grande said on a Q4 earnings call with investment analysts today.

Gershwind added that the “heavy-lifting” on ecommerce improvements have already been completed and that the ecommerce upgrades will occur “over the next quarter or so. … That’s when customers will begin seeing an impact.”

Still, he cautioned that the impact of better ecommerce technology will not be like turning on a light switch.

“This will build over time,” said, adding: “It is one of the things, though, that gives us confidence beyond this year.”

MSC Industrial defines ecommerce sales as those through digital channels including its ecommerce platforms, internet-connected vending machines, EDI, XML-based ordering systems and other electronic portals. MSC’s formal corporate name is MSC Industrial Direct Co. Inc., but it generally goes by the name of its main business unit, MSC Industrial Supply Co.

MSC Industrial earnings

For the fourth quarter ended Sept. 2, MSC Industrial reported:

  • Total net sales rose 1.3% year over year to of $1.035 billion.
  • MSC Industrial ecommerce sales fell about 3% to $627.1 million, accounting for 60.5% of total sales.
  • Gross profit margin of 40.5%, down from 41.9%.
  • Net income fell 15.9% to $87.623 million.

For the fiscal year, MSC Industrial reported:

  • Gross profit margin of 41.0%, down from 42.2%
  • Net income inched up 1% to $343.23 million.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s MSC Industrial report.

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India: The emerging B2B ecommerce powerhouse https://www.digitalcommerce360.com/2023/10/25/india-the-emerging-b2b-ecommerce-powerhouse/ Wed, 25 Oct 2023 13:58:32 +0000 https://www.digitalcommerce360.com/?p=1311145 India is not only a rising giant in the global arena, but also a booming market for B2B ecommerce. With its fast-growing economy, large population, and digital transformation, India offers immense opportunities for businesses looking to sell their products and services to other businesses online. This article explores why India should be on your radar […]

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Gaurav Dhingra_RefreshIdeas_cropped-2

Gaurav Dhingra

India is not only a rising giant in the global arena, but also a booming market for B2B ecommerce. With its fast-growing economy, large population, and digital transformation, India offers immense opportunities for businesses looking to sell their products and services to other businesses online. This article explores why India should be on your radar if you want to succeed in the B2B ecommerce space.

JoãoManuel_Vereda-global-cropped

João Manuel

India’s B2B ecommerce market is one of the fastest-growing in the world. By 2030, Redseer projects it will reach $90 billion to $100 billion in gross merchandise volume (GMV). Several factors are driving this growth, such as:

  • The increasing demand from small and medium enterprises (SMEs) for a variety of products and services, especially in sectors like packaging, textiles, apparel, and contract manufacturing. SMEs account for about 40% of India’s GDP and employ over 100 million people.
  • The availability of affordable and reliable internet connectivity and smartphones, which enable online transactions and communication. India has over 624 million internet users and over 500 million smartphone users, making it one of the largest and fastest-growing digital markets in the world.
  • The government’s initiatives to promote digitalization and ease of doing business, such as the Digital India campaign, the Aadhaar biometric identification system, the Unified Payments Interface (UPI), and the Goods and Services Tax (GST). These initiatives have simplified online payments, reduced tax complexities, and improved transparency and efficiency.
  • The emergence of innovative and disruptive B2B e-commerce platforms that connect buyers and sellers across the country and offer solutions for vendor management, supply chain automation, and supply chain financing.

India’s B2B ecommerce market is large, diverse and dynamic. It caters to different segments of buyers and sellers, such as wholesalers, retailers, manufacturers, distributors, service providers, and exporters. It also covers a wide range of product categories, such as industrial goods, consumer goods, agricultural products, healthcare products, and digital services.

India’s B2B ecommerce market is also open to international players who want to tap into this lucrative opportunity. According to a report by PayPal, cross-border B2B ecommerce in India is expected to grow at a compound annual growth rate (CAGR) of 28% from 2021 to 2026, reaching $54 billion. Some of the factors that are driving this growth are:

  • The increasing demand from overseas buyers for high-quality and low-cost products from India, especially in sectors like textiles, handicrafts, pharmaceuticals, engineering goods, and software services.
  • The increasing supply from Indian sellers who want to expand their market reach and access new customers across the globe.
  • The availability of online platforms that facilitate cross-border trade by providing features like currency conversion, payment processing, logistics support, customs clearance, and dispute resolution. Some of these platforms include Amazon Business, Alibaba, eBay, TradeIndia, and IndiaMART.

India’s B2B e-commerce market is also poised to benefit from the recent developments in the global scenario, such as:

  • The successful hosting of the G20 Summit in New Delhi onSeptember 9 and 10, 2023, which showcased India’s leadership role in addressing global challenges like climate change, sustainable development, digital transformation, multilateralism, and women empowerment.
  • The signing of several trade deals and partnerships with key countries and regions like the United States, the European Union, the UK, Japan, Australia, ASEAN, Africa, and the Middle East, which enhanced India’s economic cooperation and integration with the world.
  • The launch of several initiatives to boost India’s manufacturing sector and exports, such as the Production Linked Incentive (PLI) scheme, the Atmanirbhar Bharat (Self-reliant India) campaign, the Make in India program, and the National Export Policy (NEP).

To sum up, India is an emerging powerhouse in the B2B ecommerce space that offers tremendous potential for growth and innovation. If you want to be part of this exciting journey, here are some tips to help you succeed:

  • Understand the market dynamics and customer preferences in different regions and sectors of India. Customize your products and services according to the local needs and expectations.
  • Leverage the existing online platforms that connect you with potential buyers and sellers in India. Alternatively, create your own online presence and brand identity that showcases your value proposition and differentiates you from the competition.
  • Build trust and credibility with your Indian counterparts by providing quality products and services, timely delivery, transparent communication, and responsive customer support. Use online tools like ratings, reviews, testimonials, and certifications to demonstrate your reputation and reliability.
  • Comply with the legal and regulatory requirements of doing business in India, such as taxation, customs, licensing, and intellectual property rights. Seek professional advice and assistance if needed.
  • Stay updated with the latest trends and developments in the Indian B2B e-commerce market. Adapt to the changing customer demands and market opportunities. Innovate and experiment with new products, services, and business models.

India is a land of opportunities for B2B ecommerce players who are willing to explore, learn, and grow. With its huge market size, diverse customer base, digital infrastructure, supportive government policies, and global outlook, India is the place to be for B2B ecommerce in the 21st century.

About the Authors:

Gaurav Dhingra is the co-founder and CEO of New Delhi, India-based ecommerce marketing agency Refresh Ideas. João Manuel is the founder and CEO of international marketing and public relations firm Vereda, which operates without a specific headquarters but maintains a company website at Vereda.global, with content displayed in the English and Portuguese languages.

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Watsco expands online buyer base, sparks ecommerce sales https://www.digitalcommerce360.com/article/watsco-ecommerce-sales/ Mon, 23 Oct 2023 14:30:49 +0000 https://www.digitalcommerce360.com/?post_type=article&p=1038846 Watsco Inc. is gaining ground on several fronts as it focuses on building out an already-dominant position as an online distributor of heating, ventilation, air-conditioning and refrigeration products. For the fiscal third quarter ended Sept. 30, Watsco said ecommerce sales rose about 15%. Watsco ecommerce sales accounted for about a third, or $702.9 million, of […]

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Watsco Inc. is gaining ground on several fronts as it focuses on building out an already-dominant position as an online distributor of heating, ventilation, air-conditioning and refrigeration products.

Watsco’s overall digital strategy enables the company to do analytics on opportunities, enhance our capabilities, and measure and track our successes in all parts of our business.
A.J. Nahmad, president
Watsco Inc.

For the fiscal third quarter ended Sept. 30, Watsco said ecommerce sales rose about 15%. Watsco ecommerce sales accounted for about a third, or $702.9 million, of total sales of $2.1 billion. It also noted that ongoing improvements to its digital commerce technology and practices have resulted in a 19% expansion over the past 12 months to 54,000 customers with active ecommerce accounts.



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“Our mobile platforms and ecommerce channels have increased customer engagement, reduced attrition, created market share gains, and supported our margin expansion,” chairman and CEO Albert Nahmad said on the company’s recent earnings call with investment analysts.

Watsco ecommerce sales

Nahmad said that Watsco has added over 400,000 new SKUs to its digital product library since the start of 2023. He noted that “approximately 60% of the HVAC systems we are now selling represent new products.

Watsco notes that its product information management (PIM) database contains over 1.5 million SKUs. They’re available to more than 350,000 contractors and technicians.

In addition, Watsco makes available to professional customers its HVAC Pro+ mobile apps. They provide real-time information to such details as:

  • Product specifications
  • Technical support
  • Inventory availability
  • Warranty look-up and processing
  • Access to ecommerce ordering

Watsco said it also increased online gross merchandise sales 31% year over year during the first nine months of this year. Those sales grew to $958 million through its OnCallAir digital sales platform and its companion CreditforComfort consumer-financing service.

Digital strategy supports margin strategy

Nahmad said the company’s digital technology strategy is supporting its long-term goals for improving gross profit margin to 30% (up from 26.7% in Q3) while also upgrading how it engages contractors and end customers.

Aaron (“A.J.”) Nahmad, president, said Watsco’s overall digital strategy enables the company “to do analytics on opportunities, enhance our capabilities, and measure and track our successes in all parts of our businessthings like prospecting and winning new customers and changing and improving how customers engage with us with things like ecommerce in our apps, which eventually reduce our cost to serve those customers.

Albert Nahmad asserted that, as Watsco’s financial position continues to improve, it “provides us the flexibility to invest in virtually any opportunity” in the $50 billion North American [HVAC] market.

He added that merger-and-acquisition activity “remains an important contributor” to Watsco’s growth and noted that, in Q3, the company acquired South Carolina-based Gateway Supply Co., a regional HVAC and plumbing supplies distributor, “giving us the ability to partner with great leadership to grow beyond their $180 million sales.” Gateway operates an ecommerce store for HVAC and plumbing supplies and offers contractors online Pro accounts.

Since 1989, Watsco has acquired 68 businesses.

Check back for more earnings reports.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Fastenal’s Q3 digital sales come in at 57% of total sales https://www.digitalcommerce360.com/article/fastenal-digital-sales/ Thu, 12 Oct 2023 16:00:02 +0000 https://www.digitalcommerce360.com/?post_type=article&p=1042725 Fastenal Co.’s digital sales accounted for 57% of total sales for the third quarter, up from just under 50% a year ago, president and CEO Dan Florness said today. That includes sales via internet-connected vending machines and Fastenal.com. He added that the industrial and construction products distributor is eyeing a larger digital share of total […]

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Fastenal Co.’s digital sales accounted for 57% of total sales for the third quarter, up from just under 50% a year ago, president and CEO Dan Florness said today. That includes sales via internet-connected vending machines and Fastenal.com.

DanielFlorness-Fastenal

Dan Florness, president and CEO, Fastenal Co.

He added that the industrial and construction products distributor is eyeing a larger digital share of total sales by the end of this year. Florness said he expects the growth trend to continue over the long term.

“Our challenge … is targeting 60% sometime before we exit this year,” Florness said. “And our long-term expectation is at that 85% we talked about in the past that we believe will be part of our digital footprint.”

Understanding Fastenal digital sales

Fastenal defines its digital footprint as the combined total of sales processed through ecommerce and Fastenal Managed Inventory programs. Those include FastStock, FastBin, and FastVend vending machines, which use digital technology to record transactions and reorder stock.

The company includes under ecommerce sales transactions on Fastenal.com. It also includes those through EDI and other types of technical integrations between Fastenal and its customers. Ecommerce transactions grew 41.3% in the quarter to $452.25 million, or 24.5% of total sales.



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Overall, digital sales along with an increase on Fastenal’s onsite inventory-management services at customer locations helped to hit record sales figures.

“Here in the month of September, we broke $30 million in sales per day for the first time in our history,” Florness said on the earnings call.

Fastenal added in its Q3 press release: “We believe our opportunity to grow our business will be enhanced through the continued development and expansion of our digital capabilities.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Southern Glazer’s Wine & Spirits names a VP of omnichannel https://www.digitalcommerce360.com/2023/10/10/southern-glazers-wine-spirits-names-vp-of-omnichannel/ Tue, 10 Oct 2023 17:22:30 +0000 https://www.digitalcommerce360.com/?p=1310459 Family-owned Southern Glazer’s Wine & Spirits is out to gain market share by enhancing its collaboration with buyers and trading partners through digital and offline channels. It took a significant step in that direction yesterday in announcing several appointments to key positions including vice presidents in ecommerce and omnichannel development, customer and supplier relations, and […]

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Family-owned Southern Glazer’s Wine & Spirits is out to gain market share by enhancing its collaboration with buyers and trading partners through digital and offline channels.

It took a significant step in that direction yesterday in announcing several appointments to key positions including vice presidents in ecommerce and omnichannel development, customer and supplier relations, and national retail sales.

“These teams continue to evolve under the National Accounts umbrella, enabling Southern Glazer’s to remain the strategic thought partner to grow these categories and gain market share,” Southern Glazer’s said in statement.

Southern Glazer omnichannel development

Robyne Eldridge-SouthernGlazer'sWineSpirits

Robyne Eldridge, vice president, omnichannel development, Southern Glazer’s Wine & Spirits

Robyne Eldridge is the new vice president for omnichannel development. In addition, she will continue to lead digital B2C operations, development of ecommerce business priorities, and supplier integration.

Included among her duties is leading “B2C deliverables for digital-first eCommerce Business Priorities development,” the company says, adding: “The B2C Omnichannel team creates targeted goals to grow ecommerce sales and share for our suppliers. Digital allows us to support suppliers’ brick-and-mortar program priorities and also amplify support with digital-only opportunities.”

“Robyne oversees a team of B2C omnichannel ecommerce sales directors that work closely with our national accounts teams to find ways to grow sales and share for our suppliers at our most ecommerce enabled national accounts,” a spokeswoman says. “Robyne also oversees a new digital Center of Excellence to provide digital insights in this fast-evolving space and also support the integration of omnichannel capabilities throughout the 100+ person national accounts organization.”

Eldridge joined Southern Glazer’s in December 2019 and most recently served as vice president, B2C ecommerce for national and regional accounts.

Eldridge will report to Chris Williams, executive vice president of national accounts.

Reporting to Eldridge will be:

  • Sam Raia, senior director, omnichannel development;
  • DarShanna Smith, senior director, Amazon sales;
  • Sarah Twitchell, director, liquor channel;
  • Brennan Duke, director, mass market, club and drug channels;
  • Jennifer Bailein, director, grocery sales.

Customer and trade development

Ryan Saas has been promoted to vice president of customer and trade development for national retail sales and on-premise sales. In his new role, he will drive supplier relations and manage Southern Glazer’s NRS business with support from customer development category experts. Saas will report to Williams.

National retail sales

JR Allen has been promoted to vice president, NRS Commercial Operations. He will work on demand forecasting, inventory and execution.

Nicolle Nottingham has been appointed senior director of GoBrands. She will work on strengthening and fostering national strategy with national retail sales suppliers.

Allen and Nottingham will report to Scott Moore, senior vice president of national accounts off-premise.

Center of Excellence

Adam Byrne has been appointed vice president, customer planning and development for Southern Glazer’s Center of Excellence. His duties will include focusing on the COE’s Elevate program, which recommends branded merchandise to customers. He will report to Williams.

In July, Southern Glazer’s hired ecommerce veteran Alan Wizemann as its chief digital officer. In prior roles, he worked in digital operations for Munchkin Inc., Target.com and Lululemon Athletic.

Southern Glazer’s racked up $3 billion in digital sales last year on its B2B ecommerce platform SGProof.com.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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