The Intersection of Digital Transformation and eCommerce:
Key Roadblocks for Distributors
Summary:
Transitioning to B2B eCommerce is essential for the future growth of distribution businesses, but it's not without its difficulties. This article identifies the top roadblocks distributors face, from integration issues to the misconception of instant online sales success. Find out how to navigate these obstacles, leverage technology, and implement a successful eCommerce strategy that drives your digital transformation efforts.
Introduction:
Transitioning to B2B eCommerce is a critical move for the future growth of distribution businesses, but it's not without its hurdles. As customer expectations evolve, so do the complexities of integrating new technologies into traditional distribution business models. This article delves into the most significant roadblocks distributors face when implementing an eCommerce solution, from complex integration challenges to unrealistic expectations of instant online success. Navigating these obstacles is essential for leveraging technology effectively and implementing a robust eCommerce strategy that supports and accelerates your business’s digital growth and resilience.
In distribution, digital transformation is more than a buzzword; it's a critical path to staying competitive. Embracing eCommerce is a significant part of this transformation, but its challenges can derail your efforts if not properly managed. Planning for these roadblocks and how to move around them will position your business for long term online success.
Roadblock 1:
Integration Challenges
A common pitfall in the transition to eCommerce is the misconception that any form of integration will suffice. Many vendors claim to offer integrated solutions, but the reality often falls short. Instead of seamless connections, businesses frequently encounter borrowed code, broken paths, and fragmented systems that do not work efficiently together. True integration goes far beyond a simple patch or API connection; it requires a robust, cohesive system that ensures all components work harmoniously to deliver a seamless and efficient business operation.
Seamless ERP Integration
At the heart of true integration lies the seamless connection with existing ERP systems. Your website must integrate with your ERP to provide a unified and efficient operation. This integration should cover all aspects, from inventory management and order processing to real-time data and customer-specific pricing synchronization. When done correctly, it allows for accurate data flow for optimal operations.
Complex Pricing Model Integration
Managing complex pricing models is one of the unique aspects of B2B eCommerce, and is a common roadblock for generalized big-box website solutions. Distributors often deal with various pricing agreements tailored to different customer levels and specific market conditions. BigCommerce research found that “inaccurate pricing is the number one pain point buyers face during the B2B eCommerce purchasing process.” True integration ensures that pricing data is accurately reflected from the ERP to the website in real time. Without this, the customer experience can be frustrating, leading to higher bounce rates, lower engagement, and stagnant cart sales.
Shipping Costs and Options
Distributors must account for various shipping costs and options based on customer location and market availability. An integrated eCommerce solution can seamlessly handle these variables, syncing with third-party shipping vendors and the ERP system to provide accurate shipping information. Investing in deep integration, where all systems 'talk to each other', is crucial for the success of your digital transformation and the overall growth of your business.
Roadblock 2:
Poor Data Management - The need for a PIM
A common pitfall in the transition to eCommerce is the misconception that any form of integration will suffice. Many vendors claim to offer integrated solutions, but the reality often falls short. Instead of seamless connections, businesses frequently encounter borrowed code, broken paths, and fragmented systems that do not work efficiently together. True integration goes far beyond a simple patch or API connection; it requires a robust, cohesive system that ensures all components work harmoniously to deliver a seamless and efficient business operation.
The Mess of Product Information
In the process of building the website, another roadblock surfaces (especially with the marketing team) by way of managing product data. Distributors often struggle with inconsistent and incomplete product information scattered across manual spreadsheets, manufacturer downloads, and image libraries. This makes loading key product information into the new eCommerce site daunting and time-consuming.
A lack of a single source of truth makes it difficult to maintain accurate data for an eCommerce site, and implementing a Product Information Management (PIM) system, can rectify these issues. If you’ve ever dealt with bad data transfers, low quality images, or have a staff member dedicated to manually updating part numbers, you're familiar with this headache.
Roadblock 3:
Not Fully Live on an ERP
It's difficult to launch an eCommerce site while still trying to get fully live on an ERP system. Integration is not just about linking systems but creating a seamless flow of accurate information that both enhances the customer experience and creates efficiency. While it is critical to complete your ERP implementation first, many distributors research and vet eCommerce options during this time.
Once your business is fully operational on the ERP, you can then focus on integrating eCommerce, setting yourself up for success in online sales.
Roadblock 4:
Delays, Delays, and Dead Deals
Distributors often face extended timelines when implementing eCommerce with companies that over-promise and under-deliver. The financial impact of these delays can be costly: they sap team morale, lead to increased custom design expenses, and could result in missed online opportunities. According to a study by McKinsey, large IT projects run 45% over budget and 7% over time while delivering 56% less value than predicted.
Ensuring a well-documented implementation plan with a clear plan and a deadlined go-live date can mitigate these risks, ultimately saving both time and money.
“Time is the most valuable asset you don't own.” – Mark Cuban
By selecting a solution provider with a proven track record of on-time delivery, distributors can avoid the financial pitfalls associated with prolonged project timelines and quickly begin to reap the benefits of their eCommerce investment.
Roadblock 5:
The e-Catalog Trap
Distributors often fall into the trap of using their eCommerce site merely as a digital catalog. This limitation prevents them from driving sales effectively, as they use their website simply for product searches rather than facilitating transactions.
B2B eCommerce is more nuanced than just displaying products, and should create an engaging shopping experience, from quote to cart checkout. Customers use the website to research and look up unique pricing, stock availability, and shipping estimates. An eCommerce site scales the catalog by offering personalized search recommendations, providing quotes and estimates, and syncing back into the ERP. Leverage these eCommerce capabilities to gain insights into customer preferences, optimizing the entire shopping experience and ultimately driving more sales. This mindset is essential for transforming a static catalog into a dynamic sales engine, ensuring your eCommerce website not only attracts visitors but converts them into loyal customers
Roadblock 6:
Unrealistic ROI Expectations
Distributors often set unrealistic expectations for how much revenue their eCommerce site should generate. Remember, buying is only half of the buyer’s experience; the other half is shopping—finding, researching, and evaluating purchases. Traditional ROI models don’t apply here, and it's important to reevaluate success metrics based on other factors. Online website success should be measured by overall engagement and the value the site delivers to customers, even if orders are completed through other channels. The website's value extends beyond the shopping cart and includes customer service portals, saved labor, and customer retention that easily justify the investment.
B2B eCommerce is more nuanced than just displaying products, and should create an engaging shopping experience, from quote to cart checkout. Customers use the website to research and look up unique pricing, stock availability, and shipping estimates. An eCommerce site scales the catalog by offering personalized search recommendations, providing quotes and estimates, and syncing back into the ERP. Leverage these eCommerce capabilities to gain insights into customer preferences, optimizing the entire shopping experience and ultimately driving more sales. This mindset is essential for transforming a static catalog into a dynamic sales engine, ensuring your eCommerce website not only attracts visitors but converts them into loyal customers
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Roadblock 7:
The "Build It and They Will Come" Mentality
Creating your integrated eCommerce site is just the first step. Driving traffic and higher engagement requires continuous efforts and strategic marketing. This roadblock, an assumption that merely having a website will attract customers and sales, leads to early frustrations. Effective marketing, PR, push notifications, sponsored search, and SEO are crucial to keeping engagement high. Understanding your customer’s habits and educating them on how to use the website or portal is essential. Your eCommerce site is a place to connect them with your unique solutions and your brand.
Roadblock 8:
Cost Prohibitive
Cost is a significant consideration when looking to invest in an eCommerce solution. Budgeting and planning around things that distributors need online vs the ‘wish list’ of features can help avoid costly mistakes. Project costs often exceed initial projections due to custom design, code, and expensive revisions, especially when vendors don’t understand the B2B distribution space.
Additionally, distributors wear many hats and might not have a dedicated web person on staff or the time to manage the website independently. Choosing an eCommerce platform that is easy to manage and doesn’t require an HTML specialist to maintain it can alleviate both these time and budget concerns. Plan ahead for maintenance and other customer support offers that your future website provider includes with their service, offering adequate training and support for you or your team.
Conclusion
Despite these roadblocks, the risk of not meeting buyer expectations and being left behind is far greater than venturing into B2B eCommerce. Adding an eCommerce solution is essential for the long-term growth of your distribution business. Awareness of these challenges and strategic plans to mitigate risks while leveraging new technology will drive your digital transformation and sustained success in the competitive B2B online marketplace.
