Working with distributors And, rather than competing with traditional sales channels for major capital equipment, online companies are partnering with them. In fact, working closely with such partners as Cleveland-based Federal Equipment Co., he says, the company can recover high prices for sellers, and commissions for distributors. This strategy is especially important, since the company is setting its sights on Latin America, where Internet penetration is lower than it is in the U.S., and companies may not trust e-commerce. Partners include the largest warehouse and distribution facility in Mexico, Cil, and Hapag Lloyd-Lehnkering, a member of Germany's Preussag Group. Local associates, rather than sellers, list the equipment for sale and assist buyers during the whole transaction process.
Relationships built on traditional methods increase users' trust in online solutions.
Solutions providers with lofty e-commerce goals have learned in a hurry. You need to communicate the message, and the benefits, of online solutions. The site started as a pure auction site for industrial equipment in key verticals, says Raymont, but the company soon realized that this strategy worked better at the B2C, or commodity B2B level, and that it was unsuitable for expensive equipment. Like its competitors, the company found that it needed to spend much more time with customers, on both the buy and sell side. They have worked, either as plant foremen or equipment salespeople.