U.S. Distributors Stage a Strong Comeback, eBay Builds Up Its Heavy Equipment Offering and TrueCommerce Acquires DiCentral
U.S. Distributors Stage a Strong Comeback
According to data from the U.S. Department of Commerce, total U.S. distribution and wholesaler sales dropped by 4.8% in 2020 to $5.798T. However, 2021 is shaping up to be a solid rebound. Through the first six months of 2021, distributors are up 22.1% over the first six months of 2020, from $2.774T to $3.388T.
“This year, the supply chain has become a competitive sport,” W.W. Grainger Inc. CEO D.G. Macpherson told analysts on the company’s recent second quarter earnings call. “The year has been characterized by strong demand but a very challenging supply chain environment. Raw material shortages, labor shortages and transportation challenges have been the norm, particularly in the second quarter.”
The distribution industry’s recent accelerated growth in sales can partially be attributed to the shift from offline to online business purchasing. According to a survey from McKinsey & Co., only about 20% of B2B buyers say they hope to return to in-person sales post COVID-19. The same survey also reported that 70% of B2B decision makers are open to making new, fully self-serve or remote purchases of more than $50K, and 27% would be comfortable making purchases of more than $500K digitally.
What stood out to us? Good things come to those with B2B ecommerce platforms.
eBay Builds Up Its Heavy Equipment Offering
Popular ecommerce site eBay has partnered with and invested in bidadoo, a remarketing and auction company for trucks, equipment and capital assets. As one of the largest marketplaces for heavy equipment, eBay offers buyers a wide selection of equipment, trucks, parts and attachments for industries from construction to transportation to agriculture.
“We are on a path to making eBay the best destination for customers across a wide range of categories,” said Jordan Sweetnam, SVP North America at eBay. “We need deep expertise and a broad mix of inventory across our top categories...bidadoo has been a leader in delivering solutions for heavy equipment buyers for nearly two decades, and will be a critical partner in eBay’s journey to expand our experiences in this vertical.”
In the U.S., the used heavy equipment market is estimated between $50B and $60B. Historically, this industry has been reliant on offline, in-person sales and auctions. However, the adoption of online equipment marketplaces has accelerated through the COVID-19 pandemic.
What stood out to us? eBay ain’t yo mama’s online marketplace anymore.
TrueCommerce Acquires DiCentral
TrueCommerce, a global cloud provider of supply chain and trading partner connectivity, integration and omnichannel solutions, announced that it has acquired DiCentral, a global B2B and API services provider. The acquisition expands TrueCommerce’s global network, solutions portfolio and geographic footprint.
“Together, we offer intuitive integrated solutions and connectivity that solve the challenges our customers face in growing their business across an increasingly digitized, global and complex supply chain,” said John Fay, CEO of TrueCommerce. “
Established in 2000, DiCentral brings around 30K connections to the TrueCommerce Global Commerce Network, which has the capability to connect shippers to more than 130K retailers, distributors and logistics services providers. Furthermore, the acquisition brings TrueCommerce’s combined network of customers to 18K.
What stood out to us? More connections than a social media network.
Before you go...
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