EXECUTIVE SUMMARY
Market disruptors have hit wholesale distributors hard the last couple of years. First, new technologies like artificial intelligence (AI), voice ordering, drone delivery, and item recognition software gained considerable traction in the retail industry, which set the stage for higher B2B buyer expectations. The more buyers are exposed to these consumer conveniences, the more they want distributors to offer them. Yet, many B2B businesses are still not convinced these technologies are relevant in their industry. According to a 2020 survey by Distribution Strategy Group, distributors have formed two opinions: either they don’t consider emerging technologies a threat to their business, or they are unsure of their threat level.
Next, marketplaces began popping up everywhere. These completely digital retailers provide B2B buyers a wider product assortment, competitive pricing, faster delivery, and no minimum order requirement. Amazon Business and Alibaba started the trend, but now other players like Google Shopping, eBay Business & Industrial, and Walmart are taking a bite of the distribution industry’s market share. Even large distributors like Grainger and manufacturers are entering the arena. A 2019 survey by Worldwide Business Research and B2B Online revealed 50% of U.S. manufacturers plan to launch their own marketplaces and 43% expect to cut out distributors and sell direct on other marketplaces.
As if emerging technologies and third-party marketplaces weren’t enough, a global pandemic took the world by storm forcing storefronts to close and businesses to move to “contactless” digital channels. Since then, distributors without an online presence have struggled to stay afloat, while those with an eCommerce site continue to serve their customers and remain profitable. In fact, in a recent survey conducted by Unilog, 80% of B2B companies that have an eCommerce site say their digital channel is performing the same or better than it was prior to the COVID-19 outbreak.
We don’t mean to paint a grim picture, but businesses must understand the reality so they can plan for the future. In order to successfully manage these market disruptors, distributors need a strong digital branch that can integrate new technologies, compete with marketplaces, and evolve to meet customer needs.
This updated 2021 guide details the major milestones in building a digital branch and includes key questions to ask, tools to consider, and obstacles to avoid throughout your eCommerce journey – from pre-implementation and planning to post-launch. It also features new statistics, trends, and resources to keep you apprised of the current B2B digital commerce landscape.
For the full report, fill out the form above.