Nearly every distributor will need up-to-date digital tools, including advanced analytics and the cloud, to personalize the customer experience and align with new “hybrid” ways of doing business. Focus on tomorrow’s essentials and sales interactions.Traditional distributors aiming to offer a true omnichannel experience might need to forge innovative new partnerships and alliances. Build a distinctive supply chain to keep pace with digital leaders.This will help distributors provide technical expertise and value-added services that only they can offer, strengthening customer loyalty. Build a unique ecosystem to address customer pain points.We recommend that distributors around the world consider actions across four categories: Indeed, we believe they should endeavor to learn new strategies quickly to keep pace with digital players that significantly invest in digital and customer experience, supply chain, and talent. Distributors who have not yet been disrupted can learn from early adopters on the front line. In fact, 95 percent of B2B buyers said they were willing to make purchases without interacting with salespeople.Īll is not lost, however. Many are also venturing beyond their core geographies, such as Europe, where most incumbent distributors are smaller and have been slow to innovate and invest in digital capabilities.Īccording to our 2021 survey of close to 3,500 B2B decision makers in a dozen countries, around 25 percent fewer distributors in Europe expect to increase investments in e-commerce technologies compared with those in the United States 2 For more on our B2B pulse survey, see “ B2B Pulse: Insights from our latest global survey,” March 16, 2021.-even though European B2B customers say they are excited about the faster, cheaper, and more seamless buying experiences that digital players can offer. To continue growing, Amazon Business and many other large digital players, such as eBay, Alibaba, and Mercato, are building best-in-class distribution networks and go-to-market sales forces and offering products they used to avoid due to technical or supply chain challenges. and are expected to top $31 billion by 2023, with $11 billion in gross margin, making Amazon one of the largest distributors in the United States.
public entities and enterprises accelerate adoption of Amazon Business,” Amazon Business, March 15, 2021. Its revenues rose from $10 billion in 2018 to $25 billion in 2021, 1 “U.S. Launched in 2015, it averaged annual growth of 115 percent in its first three years. Many of the biggest digital online players are eyeing expansions into B2B realms. Digital natives and online e-commerce platforms have raised standards in retail service and convenience, gaining ground across industries.
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