Buyers of industrial supplies are shifting to online ordering, offering distributors potential growth opportunities by reaching new customers that are using the web to find new suppliers, according to a United Parcel Service (UPS) study.
The 2013 survey of some 1,500 industrial supplies purchasers in the U.S. found that more than 63 percent made purchases online, with half of those purchasers spending at least 50 percent of their annual budget with suppliers who have an e-commerce platform.
“Distributors’ e-commerce websites are opening new routes for customers, with 34 percent of survey respondents claiming they made online purchases outside of their existing supplier base in the last year,” said the study.
Of those surveyed, 67 percent think the ability to make an online purchase is very or extremely important.
When asked about the benefits of making purchases online, 64 percent cited knowing shipping costs prior to making an order, 63 percent selected the ability to see real-time product availability, and 63 percent said it was the ability to view purchase history, as well as the ability to see the estimated delivery date when ordering.
Even though industrial supply purchasers are embracing e-commerce, traditional purchasing is still important to them, along with product quality, purchase visibility, and delivery speed.
Survey findings show B2B online purchasers still want access to traditional customer methods, such as catalogs and access to a sales representative. Post-sales support was particularly important to respondents, with 68 percent indicating they would be “somewhat” or “much more likely” to do business with a new supplier if their website featured post-sales service and support.
In addition, 53 percent of buyers stated aspects of the returns process are important, such as including a pre-printed return shipping label with the original delivery.
“Sales representatives and other methods are still in demand, but the study shows B2B and B2C purchasing habits are becoming more similar,” said Brian Littlefield, industrial distribution director at UPS. “The findings underscore the need for industrial suppliers’ e-commerce sites to offer a positive customer experience, much like B2C companies.”
The poll attempted to gauge buyers’ perceptions in five key areas of the purchasing process: researching and selecting suppliers; the purchase transaction; suppliers’ websites; shipping, delivery, and returns; and post-sales service and support.
Industrial supply distributors can improve their competitiveness online by improving the way they manage their e-commerce services, including enhancing their inventory and contract logistics management; providing shipping, visibility, and returns solutions; and offering online service and support, said the report.
Photo: Infocux Technologies
