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E-Commerce Gains Momentum

WASHINGTON, DC — The U.S. Census Bureau released its E-Commerce 2000 “E-Stats” report, tracking e-commerce sales for manufacturing, merchant, wholesale distribution, retail, and certain service sectors. Census data show rapid adoption of e-business by merchant wholesalers, who accounted for more than one-fifth of all e-commerce sales in the economy, as measured by the bureau.

Merchant wholesalers achieved e-commerce sales of $213 billion in 2000, which is equal to 7.7% of total merchant wholesaler-distributor sales. Overall, e-commerce sales by wholesaler-distributors grew by 17% over 1999.

“Savvy wholesalers are using the Internet to communicate more frequently and strategically with suppliers and customers,” said Adam J. Fein, Ph.D., president of Pembroke Consulting, Inc. “Contrary to many predictions, e-commerce technologies are strengthening the wholesaler’s position in the supply chain.”

Dirk Van Dongen, president of the National Association of Wholesaler-Distributors (NAW), agreed.

“What’s interesting is that just a couple of years ago this technology was perceived as a threat to ‘bricks-and-mortar’ wholesale distribution,” said Van Dongen. “It has since become a real benefit to wholesaler-distributors who know how to use it.”

For more information, go to www.naw.org (website).

Publication date: 04/08/2002

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James Siegel is with Distribution Center Magazine.

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