Wolseley Still Waiting for Impact from AmazonSupply - Modern Distribution Management

Log In

Wolseley Still Waiting for Impact from AmazonSupply

CEO: E-commerce sales continue to grow for both B2B and B2C business

Since AmazonSupply launched in 2012, many distributors have kept an eye on how the online business-to-consumer juggernaut would tackle the business-to-business market. While it continues to be front of mind for companies, such as UK-based Wolseley, the impact hasn't been significant for many of them.

"So far, we haven't seen any material penetration of AmazonSupply coming into our business," Wolseley Chief Executive Ian Meakins said in a call to discuss the distributor's fiscal year 2014 results.

Nearly 10 percent of Wolseley's business in the U.S. comes through its B2B e-commerce platform, Meakins said. Solid growth from e-commerce is being seen in Canada and the UK, as well, albeit from a very low base.

But the success of the platform is not just in sales, according to Meakins. Sales provide marginal improvement, but there are big benefits from the use of self-service options on the e-commerce platform, such as checking past orders or account status.

Self-service events in the U.S. exceed 7 million in fiscal 2014, reducing labor costs. And there's still a lot of opportunity to grow that number, Meakins said.

Wolseley invested around £3 million (US$4.9 million) in the e-commerce platform last fiscal year, with plans to double that investment going forward.

"(It's) absolutely essential for us to have the leading B2B e-commerce offerings in our business," he said.

The company is also focused on growing its B2B platform in the U.S., where it is currently No. 3 behind Home Depot and Lowe's. "We are gaining share in that overall category," Meakins said. "But Home Depot and Lowe's are as well. The bigger players are gaining share from the smaller B2C e-commerce players."

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!


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



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.