Amazon, the 800 lbs gorilla/elephant in the room/Goliath, is a threat to distributors today. It will be more so in the future. In this conversation with tED Magazine, I talk about how that is, exactly.
What Amazon is doing right now is more important than what they have already done…Amazon is focusing on a couple things. One of things they’re focusing on is creating tie-ins and integrations with procurement systems. Those procurement systems lock down how people buy inside their organization. Amazon is building integrations to all the major procurement systems so that they can be the first and only enabled, out-of-the-box punchout catalog. That is scary.
See the other videos with tED Magazine:
Thinking Strategically About eCommerce Spend
Google Isn’t Going Away. Why this is an Opportunity for Distributors.
What B2B Customers Want
Finding Great Resources
I think on a scale of 1 to 10, Amazon is a 2 right now as a threat. What Amazon is doing right now is more important than what they’ve already done.
Today, Amazon’s main product categories don’t expand into electrical as much as they do in the other areas – MRO, office and janitorial supplies – stuff like that. Most people don’t understand, which I think is more concerning, that Amazon is focusing on a couple things.
One of those things is creating tie-ins and integration to procurement systems. Those systems lock down how people buy within their organization. The internet created a need for procurement systems because now people can just buy from wherever they want. Amazon is building integrations to all the major procurement systems so that they can be the first and only enabled, out of the box punchout catalog for every procurement system that’s out there. That is scary.