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AmazonSupply Whisper

AmazonSupply Whisper
 

Research Question: Is AmazonSupply taking share and becoming a disruptive force in the MRO industry?

Companies Covered: Amazon.com (AMZN) W.W Grainger, Inc (GWW), Fastnetal Company (FAST), MSC Industrial Direct Co, Inc (MSM), WESCO International (WCC)

Report Available: December 11, 2013

 

Blueshift’s initial research shows AmazonSupply emerging as an increasingly effective resource for procurement professionals, shifting the landscape from 18 months ago when Blueshift’s previous report showed it to be a non-starter in the MRO sector.

 

Observations

  1. AmazonSupply is an ecommerce site for business and industry, now offering over 500,000 products and emerging as a competitive threat in the business to business market. A study by Hybris, examining the 200 largest electrical distributors, revealed 40% of distributor websites did not adequately meet buyer’s needs. Amazon’s sophisticated algorithms and data metrics represents a significant advantage over conventional B2B supply companies, as consumers have been shown to pay a premium for convenience. In fact, AmazonSupply is already gaining traction, with 45% of buyers trying the ecommerce site, and 25% making frequent purchases.
  2. A procurement professional Blueshift interviewed for a separate research report attended an industry conference this summer and told us there was a tremendous increase in the amount of discussion about the effectiveness of AmazonSupply and that it is a disruptive entity that is becoming widely used.
  3. Blueshift’s May 2012 report revealed AmazonSupply was not being used, or even considered, by procurement professionals at manufacturing and industrial businesses. All sources said business with their current suppliers had not been affected by AmazonSupply. At the time, AmazonSupply was not cost-effective and did not carry enough products to fulfill all of a company’s needs for manufacturing and industrial businesses.

 

In order to better understand AmazonSupply’s effect on the MRO sector, Blueshift will gather data and issue a market research report from independent sources in the following areas: large enterprise procurement professionals, small business procurement professionals, product supply chain, and industry specialists.

 

To see other ideas Blueshift Research is currently working on, please click here.