IS IT TIME FOR PRIME
IN THE ELECTRICAL INDUSTRY? As the world emerges from the COVID-19 pandemic,
Amazon began as an online bookstore, but has
digital transitions from in-person to virtual work
become the de facto source for consumer products.
and online v. in-person shopping will stay rather
This push into new markets puts the electrical
than return to the way things were done before. The
wholesale channel at risk. What began as Amazon
wholesaling model emerged in the early 20th century
Supply targeting the B2B market, entered Canada
before widespread telephone use, before credit cards,
in 2019 as Amazon Business as well as Business
and before couriers such as FedEx could deliver products quickly from across the continent. The value that the wholesaler provided was a local source for product, credit, and information on products. With product information widely available on websites that can deliver quickly, the value that traditional wholesalers offered is eroding. The electronics distribution market has been dominated by online national distributors because
Prime. Setting up an account is designed to be easy and takes less than five minutes. According to Lisa Citton-Battel, Director, Consumer Business Group at 3M Canada, “Amazon Business presents an exciting opportunity for 3M Canada as both a seller and a buyer.” The reliance on Amazon and other online ordering through the pandemic has made online ordering comfortable for those that preferred shopping in store. While these orders may have been for consumer
components are commodities and the value that a
goods, the habits and expectations formed will spill
brick-and-mortar distributor can provide is limited.
over into a consumerization of the ordering process
The electrical wholesale channel has been insulated
for B2B purchases as well. The Amazon Effect, if you
from disruption to date because of the complexity and
will, includes expectations of readily available product,
broad range of products, along with the need for local
purchases completed with one-click-buy convenience,
inventories especially in western Canada.
information on delivery time and cost at the time of BCEA 2022 27
