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The information contained in this comprehensive survey should convince you that if you don't have a web site, you need one. VPI can create your Web Site to meet your specific needs, including on-line secure ordering capabilities. E-commerce will be vitally important for your Web Site to maximize your sales potential. If you already have a Web Site but want to enhance/update it, VPI can take it to the next level. Check with us for more details.
Introduction and Methodology This is a recap of research information available from Electonic Business Today and remains their property.

The report summarizes the results of a research study sponsored by Electronic Business Today designed to explore the role of the World Wide Web in electronics distribution. 

The study was conducted in two parts: Part I (contained in this document) involved telephone interviews conducted with executives from key distributorships around the United States whose responsibilities include strategic planning and the Web. 

Topics covered Among the topics covered in these distributor interviews are: 
  • Current and future distributor presence on the Web 
  • Services provided on distributor Web sites 
  • Extent of transactions conducted on distributor 
  • Web sites: Main ways distributors use the World Wide Web in the course of business
About Part II Part II (on separate document) involved 100 telephone interviews conducted with purchasing managers at customer companies. 

Part I: Survey of Distributors 

Graphic-Distributor Presence on the Web Three-fifths of distributors surveyed said they have a Web site. 
 
 
 
 
 
 

Among distributors that don't currently have a Web site, 9 out of 10 plan to establish one. Over 80% of those that plan to establish a site said they will do so in 1997.

Graphic-Characteristics of Existing Distributor Web Sites Three-quarters of the distributors debuted their sites in 1996 or 1997. 
 
 
 
 
 
 

One-fifth of distributors each receive over 1,000 unique hits per week on their Web site.

Graphic-Characteristics of Existing Distributor Web Sites (cont) Presentation of company information is the most common service provided on the Web sites of the distributors surveyed. Detailed line card and company personnel contact information are next most common. 

Currently, one-fifth of the distributors offer transaction capabilities (e.g. parts ordering and purchasing) on their Web site.

Graphic-Characteristics of Existing Distributor Web Sites (cont) Thirty-one percent of distributors offering transaction capabilities on their Web site said that these transactions amount to more than 10% of total sales. 
 
 

Nearly 50% of the distributors with a Web site have invested over $20,000 on creating and maintaining their site.

Graphic-Expected Characteristics of Future Distributor Web Sites Over 3/5 of distributors plan to offer transaction capabilities (ordering and purchasing) on their Web site. This is a significant increase from the one-fifth that currently provide this service
(see page 7). 

Slightly more than half of the distributors planning to offer Web transaction capabilities anticipate they will provide this service in 1997. About one-third said this service will arrive in 1998 and one in five did not know when they would offer it.

Graphic-Expected Characteristics of Future Distributor Web Sites (cont) Distributors expect a steady increase in the use of their Web sites to carry out transactions. Many distributors were unable to speculate what percent of their sales their Web site would account for in 1997, 1998 or 1999. 

Of the distributors that did speculate on projected sales through their Web site, the Web will account for, on average, 8% of total sales in 1997, 16% in 1998, and 21% in 1999.

 

 (Continued on Next Page)
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