Small and mid-sized distributors, you CAN compete online

Small and Mid-sized Distributors, you CAN Compete Online

Small and mid-sized distributors, you CAN compete online

B2B eCommerce isn’t just for the biggest companies. Small and mid-size distributors and other business can build online sales if they follow the right steps, B2B eCommerce expert Justin King says.

Most B2B companies are taking a hard look at their e-commerce and digital strategy. But most have realized that building an e-commerce site is not an easy task for many reasons, including:

  • B2B eCommerce is complex
  • eCommerce resources are hard to find and are expensive
  • Cost of entry can be high
  • A lack of instructional information and good consultants

As the recently published B2B E-Commerce 300 suggests, big companies like Grainger, Amazon, and Ferguson continue to invest in their e-commerce platforms and reap the rewards as a result. However, the cost of those rewards tends to be tens of millions of dollars invested in e-commerce platforms, integration and high-cost resources.


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How can small and mid-size distributors compete?

Small and mid-size distributors can compete with the big distributors by being smarter in how they make their investments. There are four general areas of investment that define an e-commerce strategy:

  • eCommerce platform and software
  • Integration
  • Consulting and resources
  • Digital marketing
  • eCommerce platform and integrated software

Before we talk about software selection, we must begin by looking at the first 12 months of operation. When it comes to e-commerce, most distributors don’t know what they don’t know. Distributors need to spend some time figuring out how their customers want to interact with them online. You can’t afford to customize your e-commerce platform until you know what you should be customizing according to your expected return on investment.

To get up and running quickly, you need software that gives you as many B2B e-commerce best practices as possible without requiring customization.  This is a pretty pregnant statement, however, I have dealt with this topic in many formats here on this site.

So, without opting for customization, where does a distributor invest?

  • Integration with the ERP. The ERP, or enterprise resource planning system, is the lifeblood of most B2B organizations. The e-commerce site is an extension of your organization and, therefore, must be tightly integrated into your ERP system (which includes software for managing product information and pricing, inventory records, customer orders, inventory records and financial accounting.)
  • Creative design. Invest in creative design to make your site look good, instead of just relying on software developers. Creative design is worth every penny because it will make you look professional and credible. Good creative design will help you build online trust with your customer.
  • Product data. If your product data is lousy, your operation is not unusual. To improve, pick the top 5-10% of your most popular products and invest in building our unique descriptions and attributes for those products. Have your staff or third parties keep them accurate and up-to-date as you import new product data from your suppliers. Make the data on your important products as rich as possible.

Consulting and resources

There is a gold rush going on in e-commerce that has made resources hard to find and extremely expensive. Most companies turn to consulting, but again it is an expensive play, and there are not a lot of consultants that understand B2B e-commerce.

Instead of spending your money on high-priced consultants that recycle advice, engage consultants that are B2B-focused and have a heart of a teacher. Then hire ambitious people that have a desire to learn about e-commerce and your business. Use your consultants to teach your people and grow expertise in your organization.

Digital marketing

“Build it and they will come” used to be the mantra. But not anymore. It is no longer enough to build a B2B e-commerce site; you have to know how to market it. From search engine optimization, or SEO, to marketing automation to digital advertising, you must construct a funnel of awareness, consideration and conversion–or a customer journey where a customer first becomes aware of your brand, considers your products, then places an order on your site. Google calls it See, Think and Do.

Keep it simple

I believe that small and mid-size distributors have an incredible opportunity to compete with even the biggest of competitors. However, they must start today. And when you don’t know what you don’t know, keep your first efforts simple and focused.

I wrote this originally for, and you can find the original article here.

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