Distributors Going Online Need to Understand Why Customers Would Care

Distributors Going Online Need to Understand Why Customers Would Care

Most distributors grow up knowing that they don't sell something unique. But the siren song of D2C is hard to resist, and "if you build it they will come" can affect every corporate Boardroom.

You have a shot if you are first in your category to go online. Many people point at Build (dot) Com (now owned by Ferguson) and Wayfair.

However, even those relative giants have tremendous issues - namely profitability.

If you're the fifth or sixth player in a category, a new D2C business will not likely change your trajectory, and you may never repay your investment -- at least not with your current investors.

Trying to win online with price and the widest selection is nearly impossible, except for the largest players. Even companies like Macy's and Target are not trying to compete this way.

But there are other reasons to go online -- as long as you choose the right "customer" to support.

In my mind, the most important questions are "for who" the new experiences are for and "why" they come to you. Once this is clear, building a go-to-market plan is more straightforward.

1 - Supporting your existing retail locations. Ensuring when people research online locally that you are coming up.

2 - Supporting other important players in the ecosystem, such as designers and independent design/build firms.

With features like:

1 - Easy reordering.

2 - Ability to organize different projects.

3 - Clearly publish your stock levels and promise dates.

4 - Offer convenient pickup and delivery options.

5 - Inspire your customers with ideas that would mean new revenue for you.

If you sell spices, your content should be about meals for your family.

If you sell materials and supplies, your content should about ways to improve your family's life through home improvement or automation.

Then there's just another huge benefit of improving the efficiency of your sales team. This is a great time to be focused on dramatically reducing your cost of sales.

In other words, get it out of your head that eCommerce only means direct to consumer. eCommerce means supporting your customers' and salespersons' journeys with compelling digital experiences wherever they are.