Amazon Supply

Post by state » Tue, Apr 24, 2012, 5:31 AM UTC

ChuckMcM wrote: post #16

I agree with most that the competitor here is McMaster-Carr. The collateral damage could be places like Lowes/Home Depot etc (brick and mortar supply stores) but agree with most here that SmallParts (which this was created out of) didn't have quite the execution that McMaster-Carr does. The other bit is there is the whole interaction model. In the fabricator world they seem to get an account with one of these compani…

Post by amac » Tue, Apr 24, 2012, 8:14 AM UTC

sonar_un wrote: post #64

amac wrote: post #15

I work for an Industrial Supply company and have monitored this since they bought SmallParts. Needless to say, Industrial Supply is a low margin, volume business that requires high service levels. Most Industrial Supply companies sell the same products, there really isn't a differentiator. As always in retail, price, selection and availability are crucial in making sales. This is a good match for Amazon, and obviousl…

I spent a year developing a website for an industrial supply company. (in it's many iterations). You are right about the low margin and the fragmented market. It can be a tough sell to the mom and pop stores that are trying to compete with Grainger or Northern Tool in the same marketplace. I think the biggest problem with Amazon is it's hands-off approach to selling products. The reason why there hasn't been any inno…

Post by Duff » Tue, Apr 24, 2012, 1:18 PM UTC

blake8086 wrote: post #68

HeyLaughingBoy wrote: post #23

Earlier quoted context omitted.

Don't underestimate the benefit of physical presence. When I need something now , it is a huge benefit to be able to walk into Fastenal and buy it on the spot. Also, metal is heavy, again using Fastenal as an example, I can order online and pickup instore without paying shipping. Prices are higher than onlinemetals.com, or speedymetals.com but the convenience and no shipping cost often trumps that.

You realize you still pay for shipping, right?