E-commerce still on the rise
Staff -- Industrial Distribution, 7/1/2003
PHILADELPHIA — E-commerce sales by wholesalers in 2001 increased by 13 percent over the previous year, according to a recently published report.
The "2001 e-Stats Report," published by the U.S. Census Bureau, also estimated that wholesalers were responsible for approximately 25 percent of overall e-commerce sales.
The report said that e-commerce wholesales reached $272 billion – roughly 10 percent of the total sales of merchant wholesalers.
The numbers are encouraging, especially when viewed against those from 2000, when e-commerce sales were virtually flat.
Pembroke Consulting Group's Adam Fein called the increase "clearly one reason many leading technology companies have their sites set upon small and mid-sized business markets."
Ron Schreibman, senior vice president strategic direction at the National Assn. of Wholesaler Distributors in Washington, points out that the comparatively streamlined e-commerce approach used by many distributors has been constructive.
"There is a definite move toward e-commerce in distribution, not withstanding the dot-com crash," he said. "But the type of e-commerce being implemented is changing. For instance, you don't see those large third-party e-marketplaces succeeding. Those are largely gone."
Gary Buffington, executive vice president of the Industrial Distribution Assn. in Atlanta, sees a cautious attitude on the part of I.D.A. members.
Schreibman also sees access to more and greater information as a key e-commerce component these days.
"Distribution companies are increasingly viewing information, as opposed to product itself, as a very valuable asset," he said. "When that information can be gathered and then moved quickly and efficiently to supply chain partners, all will benefit."
Perhaps as an influence from the 1990s, both are cautious when applying words like "trend" to these numbers specifically, or to the use of e-commerce by distributors in general.
Schreibman re-emphasized that a more streamlined, fundamental approach to the Web has proven to be vital to distributors. He points out that, "EDI, for instance, is the primary form of e-commerce – and EDI pre-dates even the use of the term 'e-commerce.'"
"The Internet will continue to play a key part in the way distributors and manufacturers do business," Buffington added. "Customers expect that now and you have to provide that."













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