Amazon is coming… can wholesale distributors respond to the challenge?
So you are a long time Aussie wholesale distributor and you are hearing all the white noise that Amazon is about to get in your face very soon. Amazon Business we all know has gone head on with the big global industrial distributors who themselves have already pulled the trigger on their own digital war with the giant. So on top of that now you too have to starting to worry about the Amazon tsunami wave “Down Under” and how it will further challenge your own Distribution status quo?
The warning you need to heed…..
One thing we can forewarn you about. In the exact words of Ahmed Fahour, Amazon Australia MD – “Amazon is coming to Australia with low prices, vast selection, and fast delivery”. So if you think your current modus operandi can survive you need to think again. Your preparation now is critical to you maintaining and growing your business. If you have seen it coming and have been preparing that is a good thing. For those that are wearing blinkers then please take them off and start to know what you don’t know and get some immediate answers and digital response/s in place.
Customers/Consumers have changed forever.
The Millennials coming through into the workforce are already many times the Buyers for your goods and are digital savvy therefore they will not suffer an underwhelming online customer experience. Realise as buyers they will be more value focussed than brand loyal. Amazon and other big B2B players across the globe are responding to what these buyers want and are constantly striving to give them the information and education to make decisions, ensuring product quality and at same time will make doing business and transacting with each other as easy as possible.
Meet head on the essential realities of what you are competing against…
Buyers want information at their fingertips and a reliable means of delivery. This has been the entree for Amazon to readily meet customer expectations, much like the global fast food chains we all know; nothing really different ingredients wise, but super price friendly, quick and easy to get your hands on and everywhere you go the experience is the same high standard. Translate these business fundamentals to Amazon and you get shopping whenever YOU want, knowing always where YOUR shipment is, product and competitor/review information at YOUR fingertips, and of course end to end support from Amazon itself. This is the new standard for business shopping. Just being a standout in these key areas alone has given Amazon stellar growth without maybe being expert in any industry vertical.
When it concerns industrial supplies, the reality is a part, is a part, is a part. Then what really is going to separate one distributor from the next?
We think this has to be the difference…
The Amazon tsunami survivors that will handle the peaks and troughs are going to be the ones where their customers chant “these guys know their products, they know us and we can rely on them for the depth of knowledge and support that we need which is simply not there for us with the online giants”.
Breaking it down your leadership and intellectual property has to become your distinct advantage over Amazon Business. It is going to be your specialisation and what you are going to be famous for and following Amazon’s lead on customer obsession that will keep your company value growing. So get savvy now … upgrade your digital platform, unlock great marketing experiences and make visible your product/operations knowledge and then you can expect to reap the benefits.