MSC's Website Increases Sales & Customer Stickiness - Modern Distribution Management

Log In

MSC’s Website Increases Sales & Customer Stickiness

E-commerce sales up 4.2 percent year-over-year for distributor.
brooke-84x84
Author
Date

E-commerce sales were a "high point" in the fourth quarter for MSC Industrial Supply Co. (NYSE: MSM), Melville, NY, accounting for 59.1 percent of total sales, according to Erik Gershwind, president and CEO, in a call to discuss the company's earnings. Total fourth-quarter sales were up 2.4 percent year-over-year.

MSC attributes all sales through electronic channels, including EDI and punchout, to e-commerce, but the growth this quarter was driven primarily by the positioning of the mscdirect.com website and the stickiness it is creating with customers, Gershwind said.

The website is more than just a public transaction site, it streamlines the procurement process for customers, he said. "It's pretty sophisticated."

In addition to the website's efficiency, it is also a way for MSC to become further embedded with customers. "A lot of the work flow and the functionality that we have in the site is really resonating with our customers," Gershwind said.

Customers appreciate the time MSC's website saves them, "particularly in a down market, when customers are starving for cash, cost savings, streamlining operations and freeing up people to focus on higher value add stuff," he explained.

In addition to e-commerce growth of 4.2 percent year-over-year, MSC also added 10,000 SKUs in the fourth quarter. This brings the company's total active, sellable SKU count to 1.5 million.

Even during a challenging economic environment, the company sees continued growth in these areas as positive signs for future growth. "We've capitalized on the opportunities that come with soft conditions, including cementing new customers, forging new supplier relationships and bringing great talent onto our teams," Gershwind said.

"Should conditions improve or stabilize, the company is poised for a tremendous growth and leverage story," he explained. 

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.