Ecommerce is the Future of Electronics Components Purchasing: Part 1

Without a doubt the Internet has changed the way in which the B2C market conducts both the research and purchase of products online. But can the B2B market as easily embrace the concept of a "one click" shopping experience?

We at Components Direct think the question outlined above is particularly pertinent if we consider the evolution of E-commerce in the supply chain distribution of electronic components. Given the stringent quality control measures necessary for shipping components and the complexity of the product at hand, it is clear that whilst we can leverage this "internet revolution" the backend fulfillment process and quality control mechanisms need to go hand in hand with this.

Components Direct and EBNonline :-

This month Components Direct talked to Hicotronics Devices Pvt Ltd, an industry leader in supply chain innovation and thought leadership, about the growth of E-commerce within the semiconductor market and the increasing advantageous it brings to the supply chain industry. We discuss not only the flexibility which online distribution channels bring to engineers and procurement officers but also the greater transparency and efficiency in researching and procuring parts online. A key element of our discussion with Hicotronics Devices Pvt Ltd was also the fact that online buyers need to ensure that the online source they are buying from follows all quality care procedures.

This is the first of two blog posts which will highlight the increasing role E-commerce platforms are playing within the component distribution supply chain.

Keyword Search begins the Online Education Process

Components Direct recently completed a study tracking the online search behavior of design and procurement engineers. For many engineers search engines such as "Google" or "Baidu" is the first stop for searching for components and obtaining basic product information. Our research found that search traffic tends to fall into two main categories: general or high level keywords and very specific searches.

High-level keywords can include "connectors" or "process ics" - our study found that some of these keywords received over 2 million searches per month. People conducting these types of searches are more in the research part of the buying process. Ecommerce sites like Components Direct are beneficial here because they facilitate this research with information about the product and serve more as an information site as opposed to an ecommerce site with product datasheets and part specifications. Specific online searches conversely, such as part number searches (e.g. PAS5001-NM4) or long tail keywords (for example "0.15A Inverting Switching Regulator") generate much lower volume however the person conducting their research is more further along in their design or buying process.  This ‘education phase’ is an important first step on the path to full online purchasing.

The growth of ecommerce in Electronic Component Distribution

Industry sources have stated that 50-75% of new business and nearly half of overall sales are coming from e-commerce platforms, with an anticipation of significant future growth. Companies are now investing more time and money in eCommerce growth and this is expected to continue to grow in the coming years. 

Both procurement and design engineers are viewing eCommerce websites, such as Components Direct as a complement to their personal relationships with distributors.  Not only are full-service e-commerce websites such as Components Direct, providing their users with the information and products they need, they also offer multi-channel ordering process so buyers can choose to conclude their purchase online or pick up the phone to speak to a sales person to negotiate price and delivery times.

Follow the Components Direct blog in the coming days where we will discuss the importance of purchasing products from only Authorized Ecommerce Distributors as well as additional ecommerce trends and behavors we are seeing in the market.

www.hicotronics-e.com