It’s been a few months now since Amazon announced its serious entry into the MRO market with Amazon Supply. The new service directly goes head to head with Grainger, Fastenal, McMaster Carr and MSC Direct.
If you already sell through any of these, what are your feelings about another player in the market?
More importantly, what about all those independent distributors in Hometown USA? I have to believe most of you get more sales from them (and more profits) than you do from the big boys. How do you think this will affect them?
Here are our three takeaways:
1) User Interface – which will challenge the current online transaction experience from established industrial suppliers/distributors; b-to-b commerce will be competing against a better and more established b-to-c customer experience standard
2) Price Transparency – which industry observers say will lead to reduction in pricing and margins
3) Expansion into Other Verticals – potential for Amazon Supply to expand beyond MRO into other vertical markets
What are your thoughts?