How Amazon Impacts the Construction and Trades Industry
From its founding in 1994 as an online bookstore, Amazon has grown into one of the most successful online retail companies in the entire world. According to CNN, in 2019 Amazon earned $232.9 billion dollars in revenue, and of that, $10.1 billion was net profit. Additionally, some estimates show that Amazon has a 38.7% market share of all eCommerce sales. Until recently, Amazon’s predatory business model mainly disrupted B2C (business-to-consumer) retailers. In the beginning of 2019, however, Amazon quietly launched AmazonCommercial, its first brand that targets the B2B (business-to-business) segment. According to RBC Capital Markets, Amazon’s B2B marketplace increased 2019’s gross sales by 60%, and Amazon currently sits in the #3 spot on MDM’s list of 2019’s top 40 industrial and construction products distributors in North America. Over the past few years, Amazon has gone from selling books and consumer electronics to offering all types of products and expanding into other industries. Furthermore, 112 million Americans have a Prime Membership with Amazon and 47% of all consumers begin their online shopping by looking at Amazon. So instead of browsing through the isles of Ferguson or calling the hardware store down the street, builders, designers, and contractors will soon simply look to Amazon for all their construction needs.
How Businesses Can Compete:
Due to the significant shift in consumer expectations, every company that wants to compete with Amazon must offer On-Demand delivery, an easy-to-use and user-friendly e-commerce platform, and accessible inventory. Large businesses, such as Home Depot and Lowes, have started to adjust by improving their customer experience, investing in logistics, and working with outsourced delivery companies to improve their daily operations. However, for smaller businesses this type of adjustment may be challenging. Fortunately, PartRunner offers all the necessary tools to help your company adapt to the Amazon-dominant world.
As we discussed in our first blog post, PartRunner has established a network of drivers and a diverse fleet of vehicles that can reliably handle all of your business’s delivery needs. Whether you are looking to improve the efficiency and reliability of your scheduled deliveries or to offer same-day and On-Demand deliveries, PartRunner is capable of satisfying all types of orders. By working with PartRunner as a delivery partner, you will have access to vehicles, ranging from SUV’s to 24 ft. box trucks, that can handle deliveries of all sizes.
Additionally, as mentioned in another blog post, PartRunner has incorporated eCommerce into our business. By implementing easy-to-use and user-friendly mobile and desktop applications, our customers can conduct all payments virtually, track their deliveries, and receive status updates in real-time and various forms of proof of delivery all using their phones or personal computers. All users can easily schedule and manage deliveries from any location, whether they are on the jobsite or at their own homes.
The Takeaways:
Even though Amazon’s emergence in the construction and trades industry may seem threatening to many companies, it is forcing innovation in an industry where efficiency and productivity have been persisting problems for years. For long-term survival, businesses in the construction and trades industry must acknowledge Amazon’s presence and begin to adapt. Implementing On-Demand delivery services and developing eCommerce systems are pivotal first adjustments for all companies that are seeking success in the future. Work with PartRunner and let us help your business grow and compete in the new Amazon-dominated world.
