[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/16\/building-a-profitable-distribution-business\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/16\/building-a-profitable-distribution-business\/","headline":"Building a profitable distribution business: CX matters","name":"Building a profitable distribution business: CX matters","description":"The world is changing and so are B2B customers. By adapting to current trends sooner than later, distributors can realize a more profitable distribution business. Distributors that choose to stick to traditional models rather than customer-centric solution models will fall behind.","datePublished":"2021-07-16","dateModified":"2023-07-06","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/sam-nohava\/#Person","name":"Sam Nohava","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sam-nohava\/","identifier":491,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/fd9c54e8ef11477be83ba8ebf60cedffdee6909198678fe3eef5805e3972e796?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/fd9c54e8ef11477be83ba8ebf60cedffdee6909198678fe3eef5805e3972e796?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/07\/profitable-distribution-business-ftr-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/07\/profitable-distribution-business-ftr-1.png","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/16\/building-a-profitable-distribution-business\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/b2b\/","name":"B2B Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/B2B_e-commerce"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},"Future of Supply Chain",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/intelligent-enterprise\/","name":"Intelligent Enterprise","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Intelligent_enterprise","http:\/\/www.wikidata.org\/entity\/Q6044119"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/e-commerce-solution\/supply-chain-e-commerce-solution\/","name":"Supply Chain","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Supply_chain","http:\/\/www.wikidata.org\/entity\/Q1824206"]},"Wholesale Distribution"],"wordCount":698,"keywords":["Distributors","Wholesale Distribution","Wholesale Distribution Trends"],"articleBody":"Two seismic shifts are impacting the B2B world: New players are bypassing traditional value chains, and buyers expect every business to provide a consumer-grade customer experience.In order to build and maintain a profitable distribution business, distributors must shift to these new expectations on multiple fronts simultaneously. They must transform essential pieces of their business model while balancing the need for personalizing customer interaction while scaling efficiently.      Wholesale distribution trends: More competition, supply chain disruption                After a tumultuous couple years, what trends can wholesale distributors expect now? Watch for continued supply chain disruption, increased competition, and a talent shortage.      In this ever-changing era, wholesale distributors need to address new market changes to be adaptive and profitable. Without answering these growing customer demands, distributors can expect to fall behind their competition and lose out on profits.Three trends are changing the traditional distribution model:E-commerce adoptionPersonalized customer experienceIntelligent technologiesHere’s what distributors need to do to adapt to these trends and boost their profitability.Adopt e-commerce STAT for a profitable distribution business\u00a0E-commerce has grown exponentially since the start of the pandemic. In fact, according to Magnus Meier, SAP VP and Global Head of Wholesale Distribution Unit, e-commerce jumped 10 years forward in just 90 days when the COVID-19 pandemic began.Despite the drastic jump, the trend did slow down over the course of the year. However, the facts are still staggering. In 2020, e-commerce adoption totaled a six-year relative jump.\u201cWholesale distributors that were already heavily invested in digitalization are definitely ahead of the curve. The tools they need to be effective in an economy like this, they already have in place,” Meier said.For late adopters, time is running out. An e-commerce strategy is vital to provide B2B customers the value-added services they have become accustomed to with other companies. The days of cost-plus pricing are quickly coming to an end.To be sustainable and maintain a profitable distribution business in a dynamic environment, distributors must adapt an e-commerce strategy as quickly as possible.Create personalized customer experience\u00a0B2B customers have lost patience with generic responses and lengthy delays in obtaining information. They expect a personalized, consumer-grade experience. If they don\u2019t get it from one distributor, they will find it from another.While only a small number of distributors tout their ability to provide personalized experiences, B2B customers are demanding a change in the industry. Distributors can either adapt to protect their profit or risk losing customers in the process.\u201cDistributors can make use of the capabilities that are there and really gear their strategy to a personalized market,” Meier said.To adapt and scale outstanding customer experience, distributors must utilize new technology. By moving to a proactive model of technology adoption, they will change from a traditional distributor to a personalized experience solution provider.      B2B personalization: A three-step guide to getting started                Digital personalization has a single, simple goal: Get the right content to the buyer at the right time to influence buying decisions. But B2B personalization is trickier than B2C. Find out how to do it right.      Intelligent technologies fuel a profitable distribution business\u00a0To put themselves in a competitive position and increase profitability, distributors also need to take the time to evaluate and implement intelligent technologies. The digital shift has long been occurring, but the rapid advancement in technologies is not something many distributors have set themselves up to adequately handle.The era of simply relying on bolt-on artificial intelligence and machine learning capabilities is quickly advancing. Soon distributors and other B2B companies will use these technologies for everyday operations, if they haven\u2019t already. \u201cEvery distributor should have a long-term vision,\u201d Meier said.Chatbots and other data-driven systems can already anticipate customer needs and provide answers without a human ever being involved.By adapting to these trends sooner than later, distributors can realize a more profitable distribution business. The world is changing and so are B2B customers. Distributors that choose to stick to traditional models rather than customer-centric solution models will fall behind.  Find out how top B2B sellers give buyers the speed & convenience they expect. Get the report HERE. "},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"16","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/07\/\/16\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Building a profitable distribution business: CX matters","item":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/16\/building-a-profitable-distribution-business\/#breadcrumbitem"}]}]