The Internet is only a tool

By Jack Keough -- Industrial Distribution, 1/1/2000

In a recent ID survey, it was revealed that 83 percent of the distributor respondents now have Web sites. In addition, 31 percent of those respondents said they had sold products from their site.

The survey of more than 200 distributors clearly shows that the Internet is having an impact in the distribution sector. The question remains: Are distributors really prepared for the "new" buying-selling relationship caused by the Internet? Many believe they are not.

The reality is that many manufacturers and distributors have established Web sites "because it was the thing to do."

If you have a Web site -- or are thinking of establishing one -- you should first have a strategic plan as to what you want to accomplish. Many sites today are poorly managed and launched without clear business goals. It is still critically important that you establish brand recognition of your site. Cliff Conneighton, CEO of Icoms, Inc., developer of e-commerce sites for many major corporations, recently noted: "The Net is like TV with 10 million channels. You can't just hope that someone will surf by."

Should you decide to put your company online, here are some ways to make it even more effective:

- Don't spend a lot of money on a site. Some smaller distributors we know have used high school and local college students to get their site up and running. The cost of such a site can be as little as $500.

- Don't keep your Web site a secret. Put your Web address on all promotional materials. This means the address should be noted on all business cards, stationery, and mailing lists. Remember that purchasing executives are using the Internet in record numbers. Two years ago, 42 percent of purchasers were using the Web in their businesses. Today that figure is 81 percent. And the number one reason purchasers use the Internet is for the purpose of finding new suppliers.

- Update your site on a regular basis. There's nothing worse than an outdated site.

In this month's issue we present a special section on e-commerce designed to help you determine if the Internet is right for you and your business. We hope this section will help you decide.

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