_edited.jpg)
INDUSTRIAL DISTRIBUTION NEWS—E-commerce, heralded as the future of everything, has reportedly failed to sprinkle its magic dust on industrial distributors, leaving many companies wondering why their shiny new websites aren't printing money yet, online sales are hard.
In a shocking twist that economists are calling "predictable," the Industrial Distribution 2024 Survey of E-Commerce Operations revealed that most online sales are stuck mirroring the sluggish overall economy. But hey, it’s not all bad—optimism remains for 2025, because hope is free, unlike IT consultants.
Online Sales Are Hard; A Digital Strategy That Almost Works
Despite the grim numbers, more than 75% of distributors bravely reported having some kind of e-commerce platform. These platforms, described by one respondent as “better than nothing,” were largely implemented to reach more customers. Reaching them, however, remains a work in progress.
“Sure, we added products and broadened our geographic footprint,” said one distributor. “But the customers? Still figuring out how to broaden them.”
A Year of Surprises, Mostly Bad Ones
Half the respondents reported that online sales accounted for less than 5% of their revenue, with another 30% pulling in a much chunkier 35% or more. For everyone in between, one participant explained it best: “It’s like throwing darts in the dark and hoping one sticks to the internet somehow.”
Adding to the chaos, 62% of respondents said e-commerce sales were flat or down this year. The remaining 38% are believed to have accidentally checked the wrong box on the survey.
Fastenal's 'Good News, Bad News' Playbook
Industry giant Fastenal reported a modest 6.6% increase in traditional e-commerce sales, though CEO Daniel Florness tempered excitement, explaining that customers mostly use their website to browse fasteners.
“It’s nice that we dominate the world of online bolt shopping,” Florness said in an earnings call, “but our algorithm still can’t predict whether Jim from Omaha wants Metric or Imperial sizes.”
Tech Integration: Everyone's Achilles’ Heel
A staggering half of survey respondents reported IT integration challenges, which often resulted in existential crises for digital strategies. The struggle was highlighted by MSC Industrial Supply, whose "web price realignment" rollout went about as smoothly as a forklift on a mudslide.
MSC’s CIO was promptly shown the door, and CEO Erik Gershwind reassured investors that everything would totally work better next year. “We’ve fixed the search algorithm, aligned prices, and hired more people to tell us when we’re doing dumb things,” Gershwind said confidently, while knocking on wood.
2025: The Year It All (Maybe) Comes Together
Looking ahead, 80% of respondents are optimistic about e-commerce growth next year, buoyed by dreams of smoother IT systems, slightly more tech-savvy customers, and possibly fewer supply chain hiccups.
“Sure, the numbers look bad now,” said one upbeat distributor. “But e-commerce isn’t just a sales channel—it’s a state of mind. And that mind is very excited for Q2 of 2025.”
In the meantime, distributors are urged to persevere, innovate, and maybe invest in a faster-loading homepage. After all, who needs immediate returns when you have eternal optimism?
Disclaimer: The author is currently buying bolts online. Delivery is scheduled for sometime in 2027.
Kommentare