Amazon Business continues to stealthily grab market share in the industrial distribution space by pursing the tail spend and turning its competitors into partners. Amazon has taken the lesssons it has learned in the retail space, amplified them and used them to build a B2B juggernaut. This MDM article estimates Amazon Business generates $10 billion in annual revenues.
The good news for independent industrial distributors–Amazon is not focused solely on your lines. It is also competing against McKesson, Cardinal Health, Sysco and many other mega-distributors in other sectors. For now, their goal is to capture tail spend in the industrial sector.
But…that will change. (Remember when Wal-Mart was only in small towns???) The question is, what are you doing to meet this challenge? How will you differentiate? (After all, you can’t out-Amazon Amazon.)
Playing the role of David vs. You-Know-Who, you have to be nimble and customer-focused. You have to sell THE ONE THING AMAZON CAN’T SELL–YOU. You have to leverage the people in your business and develop deeper, more meaningful–and more valuable–customer relationships. And you have to solve problems more than you sell product.
Start with understanding your customers better and telling a more intimate, more interesting, more valuable story about how you can help them. Let us know how we can help.
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